The above shows elastic supply.
If the curve was steeper but still going through the vertical axis would it still be elastic?
If the curve was flatter but going through the horizontal axis would the curve be inelastic?
Subscribe to:
Post Comments (Atom)
In the first case it still would be elastic but just less elastic.
ReplyDeleteIn the second case it would be elastic because the prices are lower and a change in price would cause a bigger change in Quantity supplied.