Final answer:
The supply curve for cars will be more elastic in the long run because producers have more time to adjust to changes in prices, such as reorganizing production or changing the amount they supply in response to price fluctuations.
Step-by-step explanation:
The supply curve for cars will be more elastic the longer the time period under consideration. When we speak about elasticity in economics, we're referring to how sensitive the quantity demanded or supplied is to a change in price. Generally, the elasticity of supply and elasticity of demand both tend to be higher in the long run as compared to the short run. The reason for this is that over a longer time period, producers and consumers have more time to adjust to price changes. For example, if the price of steel decreases, car manufacturers can reorganize production, invest in new machinery, or enter or exit the market, leading to a higher quantity supplied. The expansion of the quantity supplied from 18 million to 19.8 million in response to a decrease in costs illustrates a rightward shift in the supply curve, indicating an elastic supply.