<p>We know that in short run supply curve is horizontal which means that prices remain rigid while quantity of supply adjusts according to demand. However, in long run this reverses. I know about some explanations to these different supply curves and they sound contradictory. Like in short run there are wage contracts, labor laws etc so prices cannot adjust but still I am not clear what are the exact reason of such different supply curves. </p>

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2015-12-12T13:16:45.470Z
What do you know about the difference between "short run" and "long run"? What is the difference in their definitions, and what does that mean?
410 gone
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2015-12-12T19:42:28.933Z
Well, I infer these to be the results of the century long debate between classical economists who believed that prices will quickly adjust whnever an output gap exists (implying a vertical supply curve) and Keynesians who said that prices won't adjust in short run by themselves so some intervention is necessary (implying a horizontal supply curve). What is the rationale behind these curves.
Sub-Optimal
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2015-12-13T05:36:55.107Z
So you don't know the definitions of either, but you're asking about the consequences? Maybe it would better to start with the basics, rather than wading into the deep end.
410 gone
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2015-12-13T06:41:09.280Z
Okay then, could you please explain the basic definitions only. Then I will try to understand other things.
Sub-Optimal
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2015-12-13T07:01:48.143Z
Please check whether it's already been asked: if not, then please do ask it as a question in its own right, rather than in comments.
410 gone
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2015-12-13T13:30:09.187Z
What I can recall is that in short run at least one of the factors concerned is fixed while in long run all factors have the scope to vary.
Sub-Optimal
<supply-and-demand><economic-growth><long-run><aggregate-production>
Difference between short run and long run supply curves?
Sub-Optimal
# Difference between short run and long run supply curves?

(Asked by: username_0 on 2015-12-12)

We know that in short run supply curve is horizontal which means that prices remain rigid while quantity of supply adjusts according to demand. However, in long run this reverses. I know about some explanations to these different supply curves and they sound contradictory. Like in short run there are wage contracts, labor laws etc so prices cannot adjust but still I am not clear what are the exact reason of such different supply curves.

**Tags:** supply-and-demand, economic-growth, long-run, aggregate-production

> **Comments:**
> **username_1**: What do you know about the difference between "short run" and "long run"? What is the difference in their definitions, and what does that mean?  
> **username_0**: Well, I infer these to be the results of the century long debate between classical economists who believed that prices will quickly adjust whnever an output gap exists (implying a vertical supply curve) and Keynesians who said that prices won't adjust in short run by themselves so some intervention is necessary (implying a horizontal supply curve). What is the rationale behind these curves.  
> **username_1**: So you don't know the definitions of either, but you're asking about the consequences? Maybe it would better to start with the basics, rather than wading into the deep end.  
> **username_0**: Okay then, could you please explain the basic definitions only. Then I will try to understand other things.  
> **username_1**: Please check whether it's already been asked: if not, then please do ask it as a question in its own right, rather than in comments.  
> **username_0**: What I can recall is that in short run at least one of the factors concerned is fixed while in long run all factors have the scope to vary.  

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## 0 answers

