HW3: Elasticity and its Application : Back to Assignment Attempts: Keep the High

Question

HW3: Elasticity and its Application : Back to Assignment Attempts: Keep the Highest: /1 10. The variety of supply curves The following graph displays four supply curves (HH, II, 11, and KK) that intersect at point A. 180 160 120 20 4 60 100 120 14 160 180 200 QUANTITY (Units) Using the graph, complete the table that follows by indicating whether each statement is true or false. Statement arve JJ is more elastic between points A and D than curve KK is between points A and C. Between points A and E, curve HH is unit elastic. Between points A and D, curve 33 is elastic True False . Grade It Now

Explanation / Answer

The elasticity increases as the curve II moves to the right. The curve II has ed= 0 and the curve HH has elasticity equal to infinity or has perfectly elastic demand. Thus it is true that curve JJ is more elastic than KK.

Between A and E curve HH is perfectly elastic or the elasticity is equal to infinity. The statement that HH is unit elastic is FALSE

The elasticity between the points A and D the curve JJ is elastic.

Ed = (140-100)/(120-100)*(110/120) =1.833

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