question archive Which of the following was a time period listed when discussing the topic of price elasticity of supply? A
Which of the following was a time period listed when discussing the topic of price elasticity of supply? A
Subject:EconomicsPrice:2.88 Bought3
Which of the following was a time period listed when discussing the topic of price elasticity of supply?
A. The market period.
B. The short run.
C. The long run.
D. All of the above.
E. None of the above.
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The correct option is: D. All of the above.
- Market period. The market period is a very short period such that the supply of a product is fixed. That is, the supply curve is verticle. In this case, the supply is inelastic.
- The short run period. During the short run period, the supply curve is upward sloping. A an increase in price causes the quantity supplied to increase, but at a less amount than the increase in price. In this case, the supply is elastic.
- Long run period. In the long run, the market supply curve is horizontal. A small change in price would change the quantity supplied by a very huge amount. Thus, supply is perfectly elastic in the long run.
