10. refer to figure 5 - 6. along which of these segments of the supply curve is supply most elastic? a. ab…

10. refer to figure 5 - 6. along which of these segments of the supply curve is supply most elastic? a. ab b. cd c. ac d. ef

10. refer to figure 5 - 6. along which of these segments of the supply curve is supply most elastic? a. ab b. cd c. ac d. ef

Answer

Explanation:

Step1: Recall elasticity concept

Elasticity of supply measures responsiveness of quantity supplied to price change. More elastic when small price - change causes large quantity - change.

Step2: Analyze segments visually

On a supply - curve, flatter segments are more elastic and steeper segments are less elastic. Segment EF is the flattest among AB, CD, AC and EF.

Answer:

d. EF