The long-run elasticity of supply in most industries is _ than the short-run elasticity because in the long run, ______.

a. less elastic; consumer demand will increase, increasing industry profits

b. more elastic; resources and firms can enter the industry

c. less elastic; resources and firms can enter the industry

d. more elastic; consumer demand will increase, increasing industry profits

The elasticity of supply for a good is generally higher in the long run as compared to the short run. This is because a firm is able to expand its production more in the long run.

In the long run, all the factors are variable, so production can be increased to a greater extent. In the short run, a firm can increase only the quantity of labor employed to increase production.

Also, firms cannot enter an industry in the short run but they can in the long run. This implies that the overall production in the industry can be increased more in the long run.