10. Consider two very different kinds of plants: one that produces potato chips and one that produces computer chips. Assumethere is a large rise in demand for both kinds of chip.a. In the market...

Extracted text: Question 10 of 13 <> 10. Consider two very different kinds of plants: one that produces potato chips and one that produces computer chips. Assume there is a large rise in demand for both kinds of chip. a. In the market period, would be highly responsive to the increase in demand. b. In the short run, both types of chip manufacturer would expand output by c. The long run is likely to be Question Source: Chiang 4e - Economics Principles For A Changing World Publisher: Worth Publishers 5:25 PM 54°F A O t L 4) 10/18/2021 18 hp


Extracted text: empt 1 Elasticity: End of Chapter Problems 4. Which of the following statements about the impact of time on the price elasticity of supply is true? In the market period, supply is highly elastic because the market period is long enough for new firms to enter an industry and existing firms to alter their plant capacity. In the long run, supply is inelastic because the long run is long enough for existing firms to alter their output. In the long run, supply is elastic because the long run is long enough for new firms to enter an industry and existing firms to alter their plant capacity. In the short run, supply is perfectly inelastic because the short run is so short that the output of existing firms and the number of firms in an industry are fixed. Incorrect Question Source: Chiang 4e - Economics Principles For A Changing World Publisher: Wo 5:2 a 54°F 10/15 hp