A market supply curve has three prices-$9 50. $10.00 and $10.50 - with a quantity supplied of 8 tonnes at the price of $9.50, 10 tonnes at $10 00, and 12 tonnes at $10.50 a Is this supply curve a straight line? O This curve is a straight line because it has a constant slope of 0 25 O This curve is not a straight line because it does not have a constant slope. O This curve is a straight line because it has a constant slope of 0.5 O This curve is a straight line because it has a constant slope of 1. b. What is the price elasticity of supply, es, between prices $9.50 and $10.00 and between prices $10.00 and $10.50? Do not round your Interim calculations before obtang the final soluton e do not clear your calculator) in each case, express the number to two decmal places and do not include a pouve or neganve sign e 167 not -17 or 1667) The price elasticity of supply is between prices $9.50 and $10.00, and is between prices $1000 and $10.50. c. Based on your answers to parts (o) and (b), must a supply curve with a constant slope have a constant numerical elasticity? OA supply curve whose slope varies must hove a constant supply elasticity OA supply curve with a constant slope must have a constant supply elasticity OA supply curve with a constant slope does not need to have a constant elasticity
A market supply curve has three prices-$9 50. $10.00 and $10.50 - with a quantity supplied of 8 tonnes at the price of $9.50, 10 tonnes at $10 00, and 12 tonnes at $10.50 a Is this supply curve a straight line? O This curve is a straight line because it has a constant slope of 0 25 O This curve is not a straight line because it does not have a constant slope. O This curve is a straight line because it has a constant slope of 0.5 O This curve is a straight line because it has a constant slope of 1. b. What is the price elasticity of supply, es, between prices $9.50 and $10.00 and between prices $10.00 and $10.50? Do not round your Interim calculations before obtang the final soluton e do not clear your calculator) in each case, express the number to two decmal places and do not include a pouve or neganve sign e 167 not -17 or 1667) The price elasticity of supply is between prices $9.50 and $10.00, and is between prices $1000 and $10.50. c. Based on your answers to parts (o) and (b), must a supply curve with a constant slope have a constant numerical elasticity? OA supply curve whose slope varies must hove a constant supply elasticity OA supply curve with a constant slope must have a constant supply elasticity OA supply curve with a constant slope does not need to have a constant elasticity
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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plzz answer all three sub parts
Transcribed Image Text:A market supply curve has three prices- $950. $10.00 and $10.50- with a quantity supplied of 8 tonnes at the price of $9.50, 10
tonnes at $10 00, and 12 tonnes at $10.50
a Is this supply curve a straight line?
O This curve is a straight line because it has a constant slope of 0.25
O This curve is not a straight line because it does not have a constant slope.
O This curve is a straight line because it has a constant slope of 05.
O This curve is a straight line because it has a constant slope of 1.
b. What is the price elasticity of supply, es, between prices $950 and $10.00 and between prices $10.00 and $10.50? Do not round your
Interim calculations before obtanng the final soluton e do not clear your calculator in each case, express the number to two decimal places and do not include a
postve or negatve sign e. 167 not 17 or 1667)
The price elasticity of supply is between prices $9.50 and $10.00, and is
between prices $10.00 and $10.50.
c. Based on your answers to parts (a) and (b). must a supply curve with a constant slope have a constant numerical elasticity?
OA supply curve whose slope varies must have a constant supply elasticity.
O A supply curve with a constant slope must have a constant supply elasticity.
OA supply cunve with a constant slope does not need to have a constant elasticity
O A supply curve whose slope varies has a supply elasticity which varies by exactly the same proportions.
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