-Refer to Figure 6-12.The diagram shows two supply curves,SA and SB.As price rises from P0 to P1,which supply curve is more elastic?
A)SA
B)SB
C)They are equally inelastic.
D)They are equally elastic.

Question

-Refer to Figure 6-12.The diagram shows two supply curves,SA and SB.As price rises from P0 to P1,which supply curve is more elastic?
A)SA 
B)SB 
C)They are equally inelastic. 
D)They are equally elastic.

Quizplus · Accepted Answer

As price rises from P0 to P1, the quantity supplied by both suppliers increases, but the increase is more significant for Supply Curve B (SB). Therefore, SB is more elastic than SA.