CFA Practice Question
For most goods we will have the long run price elasticity of supply to be:
A. less than the short run price elasticity of supply if the good is immobile in the short run.
B. less than the short run price elasticity of supply.
C. greater than the short run price elasticity of supply.
Explanation: In the long run, factors of production are mobile, enabling re-allocation of resources used in production in response to price signals.
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