30. When the price of a product rises, theincrease in quantity supplied will gen

Question

30.   When the price of a product rises, theincrease in quantity supplied will generally be greater in the longrun than the short run because A.   producers maximize short-run, notlong-run, profits. B.   over time, new firms will enter theindustry and old firms will expand their operations in response tothe price increase. C.   consumers are less resistant to higherprices in the long run than in the short run because they havefewer options in the long run. D.   consumer income will expand in thelong run, causing resource prices to rise, which will induceproducers to increase output. 30.   When the price of a product rises, theincrease in quantity supplied will generally be greater in the longrun than the short run because

Explanation / Answer

B. Over time, new firms will enter the industry and old firms willexpand their operations in response to the price increase.

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