Long-Run Supply Curve

Long-Run Supply Curve

Shows the quantities which will be supplied at a range of different prices in the long run. Firms can adjust fully to price changes in the long run. Whereas in the short run supply may be quite inelastic because there is not time to expand production in the most economical way, in the long run the supply of some products may be almost perfectly elastic, because firms can simply duplicate efficient facilities for production and expand to meet the demand.