Which of the following statements regarding price elasticity of supply and the length of time for adjustment is FALSE?
A) The longer is the time period for adjustment, the greater is the price elasticity of supply.
B) The longer is the time period for adjustment, the less is the extent to which resources flow into (or out of) an industry through expansion (or contraction) of existing firms.
C) The longer is the time period for adjustment, the greater is the extent to which entry or (exit) of firms increases or (decreases) production in an industry.
D) The shorter the time period for adjustment, the greater is the price elasticity of supply.
B
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In the specificfactors model, labor migration from Mexico to the United States will cause _________ in U.S. lowskilled wages and _________ in Mexican low skilled wages.
a. increases; decreases b. increases; increases c. decreases; decreases d. decreases; increases
Which of the following is a characteristic of stock?
A) Stock represents ownership in a firm B) Stock represents a promise to repay a fixed amount of funds. C) The face value or principal plus interest is repaid at a specified period of time. D) The length of coupon payments is fixed by the stated maturity period.