What is the difference between short-run price elasticity of supply and long-run price elasticity of supply in relation to the time period of adjustment?

What is the difference between short-run price elasticity of supply and long-run price elasticity of supply in relation to the time period of adjustment?

The difference between short-run price elasticity of supply and long-run price elasticity of supply lies in the time period of adjustment.

Short-run price elasticity of supply refers to the responsiveness of quantity supplied to a change in price in the short run, where the time period of adjustment is relatively limited. In the short run, producers may face constraints such as fixed inputs or limited production capacity, which restrict their ability to quickly adjust their supply in response to price changes. As a result, the short-run price elasticity of supply is typically less elastic or more inelastic.

On the other hand, long-run price elasticity of supply refers to the responsiveness of quantity supplied to a change in price in the long run, where the time period of adjustment is more flexible. In the long run, producers have the ability to adjust their production levels by changing inputs, expanding or contracting their facilities, or entering or exiting the market. This greater flexibility allows for a more elastic or responsive supply in the long run.

In summary, the main difference between short-run and long-run price elasticity of supply is the time period of adjustment, with the short run being characterized by limited flexibility and a less elastic supply, while the long run allows for greater flexibility and a more elastic supply.