Question

In the long run with regard to price ceilings, we can expect a. a more inelastic demand curve and a more elastic supply curve. b. a more inelastic demand curve and a more inelastic supply curve. c. a more elastic demand curve and a more inelastic supply curve. d. a more elastic demand curve and a more elastic supply curve.

1) a more inelastic demand curve and a more elastic supply curve.
2) a more inelastic demand curve and a more inelastic supply curve.
3) a more elastic demand curve and a more inelastic supply curve.
4) a more elastic demand curve and a more elastic supply curve.

Answer 1

In the long run, price ceilings lead to a more elastic demand curve and a more elastic supply curve.

Step-by-step explanation:

In the long run, with regard to price ceilings, we can expect a more elastic demand curve and a more elastic supply curve.

This is because in the long run, both demand and supply tend to become more responsive to changes in price. Elasticity measures how much one variable, such as quantity demanded or supplied, responds to a change in another variable, such as price. In this case, a more elastic demand curve means that the quantity demanded will be more sensitive to changes in price, and a more elastic supply curve means that the quantity supplied will be more sensitive to changes in price.

By contrast, in the short run, demand and supply are often relatively inelastic, meaning that they are less responsive to changes in price.