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:\n1. supply curve s1 is best described as select \n2. supply curve s2 is best described as select \n3. supply curve s3 is best described as select \n4. supply curve s4 is best described as select

referring to the graph above, compare the four supply curves in terms of their price elasticity at price p1:\n1. supply curve s1 is best described as select \n2. supply curve s2 is best described as select \n3. supply curve s3 is best described as select \n4. supply curve s4 is best described as select

Answer

Explanation:

Step1: Recall elasticity concepts

Price - elasticity of supply measures the responsiveness of quantity supplied to a change in price. A vertical supply curve has zero elasticity (perfectly in - elastic), a horizontal supply curve has infinite elasticity (perfectly elastic), and upward - sloping curves have positive elasticity with flatter curves being more elastic.

Step2: Analyze S1

Supply curve S1 is vertical. At any price, the quantity supplied remains the same. So, it has zero elasticity, which means it is perfectly inelastic.

Step3: Analyze S2 and S3

S2 and S3 are upward - sloping. The flatter the upward - sloping supply curve, the more elastic it is. Since S2 is steeper than S3, S2 is less elastic than S3.

Step4: Analyze S4

Supply curve S4 is horizontal. This implies that at the given price P1, producers are willing to supply any quantity. So, it has infinite elasticity.

Answer:

  1. having zero elasticity
  2. less elastic than S3
  3. more elastic than S2
  4. having infinite elasticity