Hi all, Bit confused on combination of two concepts 1) Very short run aggregate supply = perfeclty elastic. Therefore, a change in Q will be followed by a change in P. Long run aggregate supply = perfeclty inelastic. Therefore, input prices will change to a change in P. Price level has no effect on Q. 2) Increasing cost industry. Aggregate demand increases, therfore price level increases. Firm will earn economic profit, increasing the aggregate Supply, increasing input prices. The long run aggregate supply is clearly more elastic. Graph 
I do not see how boht LRAS explanations can be combined. Any help is more than welcome. thanks