Introduction to Economics 1 Deneme Sınavı Sorusu #1275638
Which of the following is true regarding the price elasticity of supply?
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The price elasticity of supply always has a negative sign. |
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The supply of a good is said to be elastic if the quantity supplied changes less than the price changes. |
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The higher the availability of inputs for production, the lower the elasticity of supply is. |
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The steeper the supply curve, the larger the price elasticity and the flatter the supply curve, the smaller the price elasticity of supply. |
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The price elasticity of supply is greater in the long-run than it is in the short-run. |
Supply is more elastic in the long-run than in the short-run. Over the short-run, the firms cannot easily change their plant size or factory size to change their production in response to price changes. However, in the long-run change in the plant size and as a result change in the quantity supplied to price changes are both possible.
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