CFA Practice Question

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CFA Practice Question

In the short run, ______

A. supply is relatively elastic.
B. supply is relatively inelastic.
C. the elasticity of supply is unrelated to time.
Correct Answer: B

In the short run, producers face restrictions on their ability to alter output and supply is less elastic.

User Contributed Comments 4

User Comment
isida this is different from supply of mobile resources such as labor or we are just talking about the supply of merchandise for example
kalps no it is supply of everything - for example you cannot get an extra person to work for you on the same day it takes time forexample training and recruiting
magicchip adjusting inputs takes time. therefore, supply inelastic over short time frames.
choas69 small time gap to adapt and adjust.
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