If the cost increase is temporary, supply in the long run is most likely to:

CA Foundation · Business Economics · MTP · January 2026
If the cost increase is temporary, supply in the long run is most likely to:
(A) A. Remain permanently lower
(B) B. Become perfectly inelastic
(C) C. Completely disappears
(D) D. Partially recover due to adjustment

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Partially recover due to adjustment

Topics: Theory of Demand and Supply

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