Question

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 4?

A. The supply curve with slope of 4. Slope and elasticity we directly related so the higher 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. The supply curve with slope of 1. Slope and elasticity are inversely related so the lower the slope, the higher the elasticity
D. They both have the same elasticity Any supply curve that goes through the origin has an elasticity of 1

Answer 1

C. The supply curve with slope of 1. Slope and elasticity are inversely related so the lower the slope, the higher the elasticity

Step-by-step explanation:

The higher the value of the slope, the steeper the supply curve and the less elastic the supply curve is.

Elasticity of supply measures the degree of responsiveness of quantity supplied to changes in price.

If elasticity of supply is greater than one, supply is elastic. This means that a small change in price leads to a greater change in quantity supplied