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.We can determine that between 4,000 and 5,000 frisbees,supply is

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.We can determine that between 4,000 and 5,000 frisbees,supply is

Quizplus · Accepted Answer

Between 4,000 and 5,000 frisbees, the price elasticity of supply is greater than 1, indicating that supply is elastic. This means that a small increase in price will lead to a relatively larger decrease in quantity supplied.

Use the Figure Below to Answer the Following Questions