A linear,upward-sloping supply curve has
A) a constant slope and a changing elasticity of supply.
B) a changing slope and a constant elasticity of supply.
C) both a constant slope and a constant elasticity of supply.
D) both a changing slope and a changing elasticity of supply.

Question

Quizplus · Accepted Answer

A linear, upward-sloping supply curve has a constant slope, which means that the increase in quantity supplied for a given increase in price is always the same. However, the elasticity of supply changes along the curve, as the slope may be steeper or flatter in different ranges of quantity supplied. This means that the responsiveness of producers to changes in price varies depending on where they are on the curve. Therefore, option A correctly describes the characteristics of a linear, upward-sloping supply curve.

A Linear,upward-Sloping Supply Curve Has