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
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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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.
Transcribed Image Text: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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