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The long-run supply curve shows the relationship between _____ (price/quantity supplied) on the horizontal axis and _____ (quantity supplied/price) on the vertical axis
The long-run supply curve shows the relationship between _____ (price/quantity supplied) on the horizontal axis and _____ (quantity supplied/price) on the vertical axis.
Expert Solution
The long-run supply curve the relationship between the quantities supplied on the horizontal axis and the price on the vertical axis.
The long-run supply curve indicates the price and the general production of a particular economy (real GDP). The curve indicates the long-run changes in prices and their relation to change in the supply quantity at that given period. A price change may change the quantity supplied according to the law of supply. When prices increase, supply quantity also increases, and vice versa. However, in the long-run, price changes are recognized better than in the short-run. Mostly, prices are constant in the short-run and vary in the long-run due to changes in technology, demand, competition, prices, etc.
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