How does the elasticity of the long-run market supply curve compare to that of the short-run market supply curve?

Show Answers

It is consistently more elastic than the short-run market supply curve.It is always perfectly elastic.It has identical elasticity to the short-run market supply curve.It is consistently less elastic than the short-run market supply curve.It exhibits no elasticity.

Explanation

The long-run market supply curve is generally more elastic because firms can adjust all inputs and enter or exit the market, unlike the short run where some factors are fixed. Therefore, the long-run supply curve responds more to price changes compared to the short-run supply curve.