In the - run, a producer may have difficulty increasing its -, which makes supply -. However, in the - run the producer may be able to increase the quantity supplied to make its supply more -.

Question

Everett Goodwin

Business

27 March, 18:26

In the - run, a producer may have difficulty increasing its -, which makes supply -. However, in the - run the producer may be able to increase the quantity supplied to make its supply more -.

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Answers (1)

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Ann · Answer 1

The correct words for the blank spaces are (in that order) : short; supply; inelastic; long; elastic; responsive.

Explanation:

Supply elasticity refers to the changes in quantity supplied as a result of changes in other factors of production. It measures the responsiveness of the change in the price of that particular good or service offered. In the short term, if there is not enough output, the quantity supplied will be inelastic (less responsive). The opposite happens in the long term with higher levels of output: the supply is likely to become more elastic.