Which of the following helps encourage specialization?

Which has greater elasticity: a supply curve that goes through the origin with slope of 1 or a supply curve that goes through the origin with slope of 4?

A. The supply curve with slope of 4. Slope and elasticity are directly related so the higher the slope, the higher the elasticity. B. They both have the same elasticity. Any supply curve with a positive slope has the same elasticity. C. They both have the same elasticity. Any supply curve that goes through the origin has an elasticity of 1. D. The supply curve with slope of 1. Slope and elasticity are inversely related so the lower the slope, the higher the elasticity.

The production of 1,000 shirts leaves an apparel manufacturer with a capacity to produce no more than 1,100 trousers during a month. This implies:

a. the production level is inefficient. b. that if the production of trousers is reduced, that of shirts will also decline. c. that a reallocation of resources may make previously unachievable outcomes achievable. d. the production level is efficient.