Figure 6-5 -Refer to Figure 6-5.The diagram shows two supply curves,S_A and S_B.As price rises from P₀ to P₁,which supply curve is more elastic? A)S_A B)S_B C)They are equally inelastic. D)They are equally elastic.

Question

Quizplus · Accepted Answer

As price rises, S_B shifts to the right more than S_A, meaning that it is more elastic. This is because S_B has more quantity supplied at each price level compared to S_A, indicating that producers are more responsive to price changes.

Figure 6-5 -Refer to Figure 6-5.The Diagram Shows Two Supply Curves,SA and Supply

Figure 6-5 -Refer to Figure 6-5.The Diagram Shows Two Supply Curves,S_A and Supply