The supply of oil is likely to be inelastic in both the shor

The supply of oil is likely to be inelastic in both the short run and long run. Elastic in both the short run and long run. Elastic in the short run and inelastic in the long run. Inelastic in the short run and elastic in the long run.

Solution

Question: The supply of oil is likely to be

Answer:- Inelastic in the short run and elastic in the long run. [Option D]

Explanation:- Shorter the time period, supply will be inelastic because it is not possible to change the supply of the oil in short period. On the other hand, Longer the time period, greater will be the elasticity of supply.