The diagram concerns supply adjustments to an increase in demand (D 1 to D 2 ) in the immediate market period, the short run, and the long run. On the basis of this illustration, we can conclude that:





A. short-run adjustments are more economically efficient than are long-run adjustments.

B. the amount of time producers have to adjust to a change in demand is not a determinant of

supply elasticity.

C. supply is more elastic the greater the amount of time producers have to adjust to a change

in demand.

D. supply is less elastic the greater the amount of time producers have to adjust to a change

in demand.


C. supply is more elastic the greater the amount of time producers have to adjust to a change
in demand.

Economics

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Economics