Exhibit 5.9 -Refer to Exhibit 5.9,which shows three upward-sloping linear supply curves.Which of the following supply curves is the most elastic and which is the least elastic between the prices of $5 and $6? A)S₁ is the most elastic; S₂ is the least elastic. B)S₁ is the most elastic; S₃ is the least elastic. C)S₃ is the most elastic; S₁ is the least elastic. D)S₃ is the most elastic; S₂ is the least elastic. E)S₂ is the most elastic; S₃ is the least elastic.

Question

Quizplus · Accepted Answer

Elasticity of supply is determined by how much the quantity supplied responds to a change in price. The supply curve that shows the greatest change in quantity supplied for a given change in price between $5 and $6 is the most elastic. The curve with the least change in quantity supplied for the same price change is the least elastic. Without seeing the actual curves, the correct answer cannot be determined from the information given. However, the explanation is based on the general principle of elasticity.

Exhibit 5.9 -Refer to Exhibit 5.9,which Shows Three Upward-Sloping Linear Supply Curves.Which