Refer to the graph shown. In the long run supply will become:
A. more elastic, rotating from S0 to S1, creating a larger shortage with a price ceiling of P2.
B. less elastic, rotating from S0 to S1, creating a smaller shortage with a price ceiling of P2.
C. more elastic, rotating from S0 to S1, creating a smaller shortage with a price ceiling of P2.
D. less elastic, rotating from S0 to S1, creating a larger shortage with a price ceiling of P2.
Answer: A
Economics
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