10. Pri elastici of supply in the short Fun long Pun The following graph shows the long-run supply curve for pears. Place the orange line (square symbol) on the following graph to show the most likely short-run supply curve for pears. (Note: Place the points of the line either on H and Y or on H and P.) 48 Short-Run Supply 40 32 Long-Run Supply 24 16 2 10 12 QUANTITY (Thousands of pounds of pears) PRICE (Dollars per pound)
10. Pri elastici of supply in the short Fun long Pun The following graph shows the long-run supply curve for pears. Place the orange line (square symbol) on the following graph to show the most likely short-run supply curve for pears. (Note: Place the points of the line either on H and Y or on H and P.) 48 Short-Run Supply 40 32 Long-Run Supply 24 16 2 10 12 QUANTITY (Thousands of pounds of pears) PRICE (Dollars per pound)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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10. Price elasticity of supply in the short run and long run
The following graph shows the long-run supply curve for pears.
Place the orange line (square symbol) on the following graph to show the most likely short-run supply curve for pears. (Note: Place the points of the line either on H and Y or on H and P.)
Transcribed Image Text:10. Price elasticity of supply in the short run and long run
The following graph shows the long-run supply curve for pears.
Place the orange line (square symbol) on the following graph to show the most likely short-run supply curve for pears. (Note: Place the points of the
line either on H and Y or on H and P.)
48
40
Short-Run Supply
H
32
Long-Run Supply
24
16
2
10
12
QUANTITY (Thousands of pounds of pears)
PRICE (Dollars per pound)
Expert Solution
Step 1
10) The elasticity of supply refers to a change in the supply of the good when the price changes.
In the long run, the factors of production would be variable. Also, the supply would be elastic, given there would be other substitutes that could be produced in the long time period. So the long-run supply curve would be elastic.
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