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From course:

Economics A Level (DONEEEEEEE)

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Question:

Why is it in the Short Run that Price is to be more Price Inelastic?

Author: eric_galvao



Answer:

-Short Run is just when Firms Capacity is Fixed - At Least one Factor of Production is Fixed -This is usually Capital. Firms can Recruit more Workers and get more Materials, but it needs Time to make Factories and Machines. This makes it more Hard to Increase Production in the Short Term


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