referring to the graph above, compare the four supply curves in terms of their price elasticity at - price…

referring to the graph above, compare the four supply curves in terms of their price elasticity at - price p1: 1. supply curve s1 is best described as select select 2. supply curve s2 is best described as perfectly elastic more elastic than s2 3. supply curve s3 is best described as perfectly inelastic more elastic than s3 4. supply curve s4 is best described as

referring to the graph above, compare the four supply curves in terms of their price elasticity at - price p1: 1. supply curve s1 is best described as select select 2. supply curve s2 is best described as perfectly elastic more elastic than s2 3. supply curve s3 is best described as perfectly inelastic more elastic than s3 4. supply curve s4 is best described as

Answer

Explanation:

Step1: Recall price - elasticity of supply concept

Price - elasticity of supply measures the responsiveness of quantity supplied to a change in price. A vertical supply curve has zero price - elasticity (perfectly inelastic), a horizontal supply curve has infinite price - elasticity (perfectly elastic), and flatter non - horizontal curves are more elastic than steeper non - vertical curves.

Step2: Analyze S1

Supply curve S1 is vertical. At any price, the quantity supplied remains the same. So, it is perfectly inelastic.

Step3: Analyze S2 and S3

Supply curve S2 is steeper than S3. A flatter supply curve is more elastic. So, S3 is more elastic than S2.

Step4: Analyze S4

Supply curve S4 is horizontal. At a given price (P1), the quantity supplied can be infinitely varied. So, it is perfectly elastic.

Answer:

  1. perfectly inelastic
  2. more elastic than S2
  3. more elastic than S3
  4. perfectly elastic