Figure: Supply Elasticity Refer to the figure. Which one of the four supply curves has the greatest responsiveness to price changes?
A) Supply Curve A
B) Supply Curve B
C) Supply Curve C
D) Supply Curve D

Question

Figure: Supply Elasticity  Refer to the figure. Which one of the four supply curves has the greatest responsiveness to price changes?
A) Supply Curve A 
B) Supply Curve B 
C) Supply Curve C 
D) Supply Curve D

Quizplus · Accepted Answer

Supply Curve B has the greatest responsiveness to price changes because it has the steepest slope, indicating a high degree of elasticity. As price changes, producers can quickly adjust their output levels to reflect changes in demand. In contrast, Supply Curve A has a flatter slope, indicating a lower degree of elasticity, meaning producers are less able to respond to changes in price. Supply Curves C and D have varying degrees of elasticity, but they are less responsive than Curve B.

Figure: Supply Elasticity Refer to the Figure