The emigration of some of Whoville's workers reduces the quantity of thingamabobs supplied at every price by 50.The new supply curve will ____ the old supply curve.
A)be steeper and less elastic at every price than
B)have the same slope and the same elasticity at every price as
C)have the same slope and be more elastic at every price than
D)More information is needed to predict the relationship between the elasticities of the two supply curves.

Question

Quizplus · Accepted Answer

The new supply curve will have the same slope as the old one (since only the quantity supplied at each price has changed), but it will be more elastic because a smaller change in price will now result in a larger change in quantity supplied (since there are fewer workers producing thingamabobs).

The Emigration of Some of Whoville's Workers Reduces the Quantity