Would you expect the price elasticity of supply for guitars to be more inelastic in the...
Would you expect the price elasticity of supply for guitars to be more inelastic in the short run or the long run?
Group of answer choices
short run because it is more difficult to respond to changes in price given a shorter period oftime.
long run because it is more difficult to respond to changes in price given a longer period oftime.
the responsiveness should be the same in the short and the long run
Homework Answers
short run because it is more difficult to respond to changes in price given a shorter period of time.
Explanation: It takes time for supplies to adjust supply with a change in price. Therefore, supply tends to be more inelastic in the short run as compared to the lung run.
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