Figure 4.9 -Refer to Figure 4.9.The diagram shows two supply curves, S_A and S_B.As price rises from P₀ to P₁, which supply curve is more elastic? A)S_A B)S_B C)They are equally inelastic. D)They are equally elastic.

Question

Quizplus · Accepted Answer

As price rises from P₀ to P₁, S_B undergoes a larger expansion in quantity supplied compared to S_A. Thus, S_B is more elastic than S_A.

Figure 4.9 -Refer to Figure 4.9.The Diagram Shows Two Supply Curves, SA

Figure 4.9 -Refer to Figure 4.9.The Diagram Shows Two Supply Curves, S_A