Perfectly elastic
Inelastic
More elastic
Stable
Answer is Right!
Answer is Wrong!
The correct answer is C. More elastic.
The elasticity of supply measures how responsive suppliers are to changes in price. In the short run, suppliers have less time to adjust their production, so supply is generally less elastic. In the long run, suppliers have more time to adjust their production, so supply is generally more elastic.
For example, if the price of wheat goes up, farmers may not be able to immediately increase their production in the short run. They may need to plant new crops, which takes time. However, in the long run, farmers can increase their production by planting more crops and by using more efficient farming methods.
Here is a brief explanation of each option:
- A. Perfectly elastic: This means that suppliers are willing to supply any quantity of a good at a given price. This is a theoretical concept that does not occur in reality.
- B. Inelastic: This means that suppliers are not very responsive to changes in price. This can happen when it is difficult or expensive for suppliers to adjust their production.
- C. More elastic: This means that suppliers are more responsive to changes in price. This can happen when it is easier or less expensive for suppliers to adjust their production.
- D. Stable: This means that the elasticity of supply does not change over time. This is not realistic, as the elasticity of supply can change due to factors such as technological advances, changes in government policy, and changes in the cost of inputs.