4) The supply curve of good A, and the supply curve if good B are both depicted in the followinggraph. Which statement is TRUE?Price10-9-87654-3-2k00Supply ASupply B100 200 300 400 500 600 700 800 900 1,000 QuantitySupply of good B is more elastic than the supply ofgood A.Supply of good A is unit elastic.Supply of good B is perfectly inelastic.Supply of good A is more elastic than the supply ofgood B.

Price elasticity of supply measures the responsiveness of change in quantity supply to change in…

Answered: Supply of good B is more elastic than…

Supply of good B is more elastic than the supply of good A. Supply of good A is unit elastic. Supply of good B is perfectly inelastic.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4) The supply curve of good A, and the supply curve if good B are both depicted in the following
graph. Which statement is TRUE?
Price
10-
9-
8
7
6
5
4-
3-
2
k
0
0
Supply A
Supply B
100 200 300 400 500 600 700 800 900 1,000 Quantity
Supply of good B is more elastic than the supply of
good A.
Supply of good A is unit elastic.
Supply of good B is perfectly inelastic.
Supply of good A is more elastic than the supply of
good B.

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