If two supply curves pass through the same point and one is steep and the other is flat,which of the following statements is correct?
A) The flatter supply curve represents a supply that is inelastic relative to the supply represented by the steeper supply curve.
B) The steeper supply curve represents a supply that is inelastic relative to the supply represented by the flatter supply curve.
C) Given two prices with which to calculate the price elasticity of supply,that elasticity is the same for both curves.
D) A decrease in demand will increase total revenue if the steeper supply curve is relevant,while a decrease in demand will decrease total revenue if the flatter supply cure is relevant.

Question

Quizplus · Accepted Answer

The steeper supply curve represents a supply that is inelastic relative to the supply represented by the flatter supply curve. This is because the steeper curve indicates that the quantity supplied will not change much in response to a change in price, while the flatter curve indicates that the quantity supplied will change significantly in response to a change in price.

If Two Supply Curves Pass Through the Same Point and One