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According to the source, how do elasticities of demand and supply typically compare between the short run and the long run?
AElasticities are often lower in the short run than in the long run
BElasticities are always higher in the short run than in the long run
CElasticities never change between the short run and the long run
DElasticities apply only in the long run, never in the short run
Answer & Solution
Correct answer: A. Elasticities are often lower in the short run than in the long run
1. Elasticities are often lower in the short run than in the long run.
2. It becomes easier for consumers and producers to fully adjust quantity in response to a price change over a longer time horizon.
3. This is a general pattern , not a rule that never has exceptions or a claim that short-run elasticity is always higher.
4. Elasticity is a meaningful concept in both time frames, just with typically different values.
_Source: OpenStax Principles of Microeconomics for AP Courses (CC BY 4.0), Ch 5 "Elasticity", section 5.3 | Elasticity and Pricing_
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