Elastic and inelastic supplyThe following graph shows the supply of a good. Attached the graph For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic.RegionElasticInelasticBetween W and X Between Y and Z True or False: For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes less elastic because firms may need to invest in additional capital in order to increase production further. True False The image is a graph that depicts the supply curve on a price versus quantity chart. The x-axis represents the quantity in units, while the y-axis represents the price in dollars per unit.### Description of the Graph:- **Axes**: - **X-Axis (Quantity in Units)**: This axis ranges from 0 to 90 units. - **Y-Axis (Price in Dollars per Unit)**: This axis ranges from 0 to 180 dollars.- **Supply Curve**: - The curve is colored orange and illustrates the relationship between price and quantity supplied. It shows an upward-sloping trend, typical of a supply curve, indicating that as price increases, the quantity supplied also increases.- **Points on the Graph**: - **Point W**: Located at approximately (10, 20), indicating a price of $20 per unit at a quantity of 10 units. - **Point X**: Located at approximately (25, 20), indicating a consistent price of $20 per unit as the quantity increases to 25 units. - **Point Y**: Located at approximately (80, 90), showing a price increase to $90 per unit at a quantity of 80 units. - **Point Z**: Located at (90, 180), indicating the maximum price of $180 per unit at a quantity of 90 units.- **Dashed Lines**: - Horizontal and vertical dashed lines extend from each key point to the corresponding axes, illustrating the respective prices and quantities.This graph is a visual representation of how supply increases with an increase in price, holding other factors constant. The curve effectively demonstrates the law of supply in economics, with specific data points marking significant intersections of price and quantity.

ANS PES is a measure that gives us an idea about how the quantity (Q) supplied of a commodity change…

Answered: Elastic and inelastic supply The…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Elastic and inelastic supply

The following graph shows the supply of a good.

Attached the graph

For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic.

Region	Elastic	Inelastic
Between W and X
Between Y and Z

True or False: For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes less elastic because firms may need to invest in additional capital in order to increase production further.

True

False

The image is a graph that depicts the supply curve on a price versus quantity chart. The x-axis represents the quantity in units, while the y-axis represents the price in dollars per unit.

### Description of the Graph:

- **Axes**:
- **X-Axis (Quantity in Units)**: This axis ranges from 0 to 90 units.
- **Y-Axis (Price in Dollars per Unit)**: This axis ranges from 0 to 180 dollars.

- **Supply Curve**:
- The curve is colored orange and illustrates the relationship between price and quantity supplied. It shows an upward-sloping trend, typical of a supply curve, indicating that as price increases, the quantity supplied also increases.

- **Points on the Graph**:
- **Point W**: Located at approximately (10, 20), indicating a price of $20 per unit at a quantity of 10 units.
- **Point X**: Located at approximately (25, 20), indicating a consistent price of $20 per unit as the quantity increases to 25 units.
- **Point Y**: Located at approximately (80, 90), showing a price increase to $90 per unit at a quantity of 80 units.
- **Point Z**: Located at (90, 180), indicating the maximum price of $180 per unit at a quantity of 90 units.

- **Dashed Lines**:
- Horizontal and vertical dashed lines extend from each key point to the corresponding axes, illustrating the respective prices and quantities.

This graph is a visual representation of how supply increases with an increase in price, holding other factors constant. The curve effectively demonstrates the law of supply in economics, with specific data points marking significant intersections of price and quantity.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions