Question

Since the supply curve intersects the horizontal axis, all of the points along the supply curve shown are inelastic: Tru...


Since the supply curve intersects the horizontal axis, all of the points along the supply curve shown are inelastic: True or false and Explain your choice

  1. Most likely, the elasticity of demand for transportation is greater than the elasticity of demand for cars.
  2. Revenue remains unchanged along a straight-line demand curve.
Transcribed: Quantity Price

Answer

Since you have asked multiple questions, we would be answering the first one for you. To get the answers to the rest of the questions, kindly repost them. 

Solution:

Elasticity of supply is the responsiveness of quantity supplied when nothing but the price changes. 

 

When the supply curve is along the horizontal axis, the supply would be inelastic i.e. Es<1. In other words, even a large change in price would lead to small change in quantity supplied. 

Hence the statement is true. 

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