If crude-oil prices increase as the total amount of gasoline increases,the supply curve for gasoline will be relatively steep and the price of elasticity of supply for gasoline will be
A) relatively large.
B) perfectly vertical.
C) perfectly horizontal.
D) relatively low.

Question

Quizplus · Accepted Answer

When the supply curve is steep, it indicates that there is a low level of elasticity of supply, meaning that a change in price has a relatively smaller effect on the quantity supplied. Therefore, the correct option is D - the price elasticity of supply for gasoline will be relatively low.

If Crude-Oil Prices Increase as the Total Amount of Gasoline