Ans.19 Supply elasticity is usually greater than 1 in the short run or in the long run because su... more Ans.19 Supply elasticity is usually greater than 1 in the short run or in the long run because supply is more elastic in the long run in comparison to short term for produced goods because it is assumed that in the long run all factors of production must be increased in the same proportion total increase the supply. On the other hand in the short run only labour can be increased in the market which depends upon the number of orders for various products received by the company in the market. For example the producta whose production process is easily replicate in the market, the elasticity of supply for those products is always greater than 1. For example, Candy is one of such product in the market. On the otherhand,rice is another example whose elasticity of supply is greater than 1 in the long run.
Ans.19 Supply elasticity is usually greater than 1 in the short run or in the long run because su... more Ans.19 Supply elasticity is usually greater than 1 in the short run or in the long run because supply is more elastic in the long run in comparison to short term for produced goods because it is assumed that in the long run all factors of production must be increased in the same proportion total increase the supply. On the other hand in the short run only labour can be increased in the market which depends upon the number of orders for various products received by the company in the market. For example the producta whose production process is easily replicate in the market, the elasticity of supply for those products is always greater than 1. For example, Candy is one of such product in the market. On the otherhand,rice is another example whose elasticity of supply is greater than 1 in the long run.
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