Question 5.11

3. True or false? Long-run price elasticities of supply are generally larger than short-run price elasticities of supply. As a result, the short-run supply curves are generally flatter than the long-run supply curves.

False. It is true that long-run price elasticities of supply are generally larger than short-run elasticities of supply. But this means that the short-run supply curves are generally steeper, not flatter, than the long-run supply curves.