Question

10. Price elasticity of supply in the short run and long run

 The following graph shows the short-run supply curve for pears. 

Place the orange  (square symbol) on the following graph to show the most likely long-run supply curve for pears. (Note: Place the points of the line either on N and K or on N and H. )

Answer 1

Compared to in short run, supply is more elastic in long run. So the supply curve is steeper in short run and flatter in long run (line correcting points N and K).