MindTapCengage LearningGoogle Chrome Not secure ing cengage

MindTap-Cengage Learning-Google Chrome Not secure ing cengage com/stati ic/nb/ui/index.html?nbld-7163998unbNodeld- 2696678148deploymentid-5673679969765548463 5% MINDTAP Homework (Ch 05) 13. The variety of supply curves The following graph displays four supply curves (HH, It, 13, and KK) that intersect at point A. QUANTITY (Uns 5 6 8 9

Solution

Statement 1 is True.

In point AD the price has increased from point 200 to 240 nut the quantity has changed from 200 to 180. The change in quantity supplied is more than the change in price. Hence, we can say that the curve JJ is elastic at point AD.

Statement 2 is false.

Curve HH is perfectly elastic at point AE. Without any change in price, the quantity can change as many at it want.

Statement 3 is true.

Curve KK is less elastic as compared to curve JJ at any point. The more perpendicular the curve gets the less elastic it gets.