As price elasticity of supply becomes more elastic over time,the overall shape of the supply curve
A) becomes more vertical.
B) remains unchanged.
C) becomes closer to 45 degrees from the origin.
D) becomes completely vertical.
E) becomes more horizontal.

Question

Quizplus · Accepted Answer

As price elasticity of supply becomes more elastic (i.e. the quantity supplied changes significantly in response to a change in price), the supply curve becomes flatter (more horizontal) because the increase in quantity supplied in response to a price change is greater. Therefore, choice E, "becomes more horizontal," is the best answer.

As Price Elasticity of Supply Becomes More Elastic Over Time,the