Question

Elasticity of supply becomes __________ elastic over time because __________

a. less; of the scarcity of resources.

b. less; have more time to acquire additional inputs. c. more; demand becomes more inelastic.

d. more; demand will always continue to increase.

e. more; suppliers have more time to acquire additional inputs

Answer 1

• The elasticity of supply becomes more   elastic over time because suppliers have more time to acquire additional inputs ( Option - E )

The reason why its's true is that, in the short-run, suppliers have to work with a fixed amount of input and hence supply can't be altered to a sudden increase or decrease in demand

But, over time, the supply can be changed as producers can get time to acquire additional inputs and so the supply can be more responsive and the time allows this flexibility

That's why :-

• The elasticity of supply becomes more   elastic over time because suppliers have more time to acquire additional inputs ( Option - E )