Figure 5-13

-Refer to Figure 5-13.Over which range is the supply curve in this figure the most elastic?
A) $16 to $40
B) $40 to $100
C) $100 to $220
D) $220 to $430

Question

Figure 5-13
 
-Refer to Figure 5-13.Over which range is the supply curve in this figure the most elastic?
A) $16 to $40 
B) $40 to $100 
C) $100 to $220 
D) $220 to $430

Quizplus · Accepted Answer

The supply curve is most elastic when the slope is the most flat, meaning a small change in price leads to a large change in quantity supplied. In this figure, we can see that the slope of the curve is the flattest in the range of $16 to $40, which indicates the supply is the most elastic in this price range.

Figure 5-13 -Refer to Figure 5-13.Over Which Range Is the Supply Curve