Asked by Alianna Jiminian on Jul 05, 2024
Verified
Which statement is true?
A) Over time the supply of a particular good or service tends to become more elastic.
B) A perfectly elastic supply curve is a horizontal line.
C) Supply is most elastic in the long run.
D) All of the statements are true.
Supply Curve
A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing to offer for sale.
Perfectly Elastic
A situation in economics where the quantity demanded or supplied changes by an infinite amount in response to any change in price; horizontal demand or supply curve.
Elastic in the Long Run
Describes a situation where the quantity demanded or supplied of a good or service responds significantly to price changes over a longer period.
- Comprehend the immediate and extended adjustments within the market and their impact on elasticity.
- Comprehend the influence of market cycles and the perishable nature of products on the flexibility of supply.
Verified Answer
TK
Tyler KinchenJul 08, 2024
Final Answer :
D
Explanation :
All the statements are true. Over time, suppliers can adjust their production and resources, making the supply more elastic. A perfectly elastic supply curve is indeed a horizontal line, indicating that any amount of the good can be supplied at a particular price. Supply elasticity tends to increase in the long run as producers have more time to adjust their production processes and inputs.
Learning Objectives
- Comprehend the immediate and extended adjustments within the market and their impact on elasticity.
- Comprehend the influence of market cycles and the perishable nature of products on the flexibility of supply.