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 5?
A. The supply curve with slope of 1. Slope and elasticity are inversely related so the lower 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 5. Slope and elasticity are directly related so the higher the slope, the higher the elasticity.
Ans: C. They both have the same elasticity. Any supply curve that goes through the origin has an elasticity of 1.
You might also like to view...
Which of the following is generally true of monopoly?
a. Price exceeds marginal cost b. Marginal revenue is less than price. c. Output is restricted relative to the socially efficient level. d. All of the above are generally true of monopoly.
Which of the following is not a characteristic of indifference curves?
A. They are negatively sloped. B. They never intersect. C. They are concave toward the origin. D. Combinations of goods that include more of both goods are preferred, on a higher indifference curve.