Principles of Microeconomics / Unit 4 MIC 0312 short lesson, about 20 seconds
Short Run Against Long Run
Captions available
The idea
Elasticities are lower in the short run than the long run, for demand and supply alike: given time, buyers find substitutes and sellers build capacity.
In practice
A higher electricity price changes little by tomorrow and much within a year.
Where people slip
The same shift moves price a lot in the short run and quantity a lot in the long run; both diagrams are right.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
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