A. It can be concluded that the demand for the product is elastic. B. It can be concluded that the supply of the product is elastic. C. It can be concluded that the supply of the product is inelastic. D. No conclusion can be reached with respect

to the elasticity of supply.

A. perfectly elastic in the long run because consumer demand will have sufficient time to
adjust fully to changes in supply.
B. more elastic in the long run because there is time for firms to enter or leave the industry.
C. perfectly inelastic in the long run because the law of scarcity imposes absolute limits on
production.
D. less elastic in the long run because there is time for firms to enter or leave an industry.


Answer: B

Economics

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