Why is long-run price elasticity of supply greater than short-run price elasticity of supply?

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Principles of Economics

ISBN: 978-1285064437

7th edition

Authors: Fred M. Gottheil

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Question Posted: Apr 21, 2015 09:30 AM

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Is the price elasticity of supply usually larger in the short run or in the long run? Why?
Why is supply elasticity higher in the long run than in the short run?
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Why is long-run price elasticity of supply greater than short-run price elasticity of supply?

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The answer is that producers need time to adjust the quantity they supply to pr...View the full answer

Principles of Economics

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