Question

be original and use your own words

Are market supply curves typically more elastic in the short run or in the long run? Explain.

Answer 1

Market supply curves are typically more elastic in long run then in short run. Reason behind this statement is that in long run all the factors of production are variable in nature and in short run only labour is variable in nature and all other factors are fixed in nature. This makes firms in the industry to produce more of output easily in long run than in short run. Thus when there is an increase in the price of a commodity in the market firms can easily increase their supply in long run than in short run. This makes market supply curve more elastic in long run then in short.