Exhibit 5.10

-Refer to Exhibit 5.10,which shows two upward-sloping linear supply curves that pass through the origin.Which supply curve is more elastic?
A)Both S and S' have the same elasticity.
B)S is more elastic at lower prices, and S' is more elastic at higher prices.
C)S is more elastic at higher prices, and S' is more elastic at lower prices.
D)S is more elastic than S'.
E)S' is more elastic than S.

Question

Exhibit 5.10
 
-Refer to Exhibit 5.10,which shows two upward-sloping linear supply curves that pass through the origin.Which supply curve is more elastic?
A)Both S and S' have the same elasticity. 
B)S is more elastic at lower prices, and S' is more elastic at higher prices. 
C)S is more elastic at higher prices, and S' is more elastic at lower prices. 
D)S is more elastic than S'. 
E)S' is more elastic than S.

Quizplus · Accepted Answer

Both supply curves have the same elasticity because they are linear and pass through the origin, meaning their elasticity is constant and equal along the entire curve.

Exhibit 5.10 -Refer to Exhibit 5.10,which Shows Two Upward-Sloping Linear Supply Curves