Use the figure below to answer the following questions. Figure 6.3.1
-Refer to Figure 6.3.1 showing the market for frisbees before and after a tax is imposed.At a quantity of 4,500 frisbees,supply is
A)inelastic.
B)unit elastic.
C)elastic.
D)perfectly elastic.
E)perfectly inelastic.

Question

Use the figure below to answer the following questions.  Figure 6.3.1
-Refer to Figure 6.3.1 showing the market for frisbees before and after a tax is imposed.At a quantity of 4,500 frisbees,supply is
A)inelastic. 
B)unit elastic. 
C)elastic. 
D)perfectly elastic. 
E)perfectly inelastic.

Quizplus · Accepted Answer

At a quantity of 4,500 frisbees, the demand curve intersects the supply curve at a point where the slope of the supply curve is relatively steep, indicating that a small change in price will result in a large change in quantity supplied. This suggests that supply is elastic at this quantity.

Use the Figure Below to Answer the Following Questions