ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Supply is normally more elastic in the long run than in the short run for produced goods, since it is generally assumed that in the long run all factors of production can be utilized to increase supply, whereas in the short run only labor can be increased, and even then, Page 2 changes may be prohibitively costly.

Detailed explanation-2: -An elastic demand or elastic supply is one in which the elasticity is greater than one, indicating a high responsiveness to changes in price. An inelastic demand or inelastic supply is one in which elasticity is less than one, indicating low responsiveness to price changes.

Detailed explanation-3: -The easier it is to substitute among the resources used to produce a good or service, the greater is its elasticity of supply. The more time that passes after a price change, the greater is the elasticity of supply. Momentary supply is perfectly inelastic.

Detailed explanation-4: -The price elasticity of supply is greater when the length of time under consideration is longer because over time producers have more options for adjusting to the change in price.