Imagine a factory that can't quickly buy new machines. That's like the 'short run' in economics! It's a time when businesses can't easily change how much they make. This affects prices and how much money they make. Investors watch closely because it affects stocks and other investments.
- The short run is when a company can't change things easily, like adding more workers or machines.
- It affects how much stuff companies make, how much they charge, and how much money they earn.
- Sudden changes like higher prices for supplies can affect how much profit a business makes.
| Thing | Explanation |
|---|---|
| Short Run | When it's hard for businesses to adjust quickly to changes. |
| Stock Market | Prices go up and down because of what's happening in the short run. |
