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 3? The supply curve with slope of 1. Slope and elasticity are inversely related so the lower the slope, the higher the elasticity. They both have the same elasticity. Any supply curve that goes through the origin has an elasticity of 1. The supply curve with slope of 3. Slope and elasticity are directly related so the higher the slope, the higher the elasticity. They both have the same elasticity. Any supply curve with a positive slope has the same elasticity.

Question

Monica

Business

4 September, 02:07

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 3? The supply curve with slope of 1. Slope and elasticity are inversely related so the lower the slope, the higher the elasticity. They both have the same elasticity. Any supply curve that goes through the origin has an elasticity of 1. The supply curve with slope of 3. Slope and elasticity are directly related so the higher the slope, the higher the elasticity. They both have the same elasticity. Any supply curve with a positive slope has the same elasticity.

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Brady English · Answer 1

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

Explanation:

If a supply has a high slope, such as 3, it means it is relatively steep in shape. This high steepness translates into an inelastic supply curve, meaning that a change in price has a relatively low effect on the quantity supplied.

On the other hand, If a supply has a low slope, such as 1, it means it is relatively flat in shape. This high flatness translates into an elastic supply curve, meaning that a change in price has a relatively high effect on the quantity supplied.

Therefore, slope and elasticity are inversely related. This means that the lower the slope, the higher the elasticity. Hence, a supply curve with a slope of 1 has greater elasticity than a supply curve with a slope of 3. This corresponds to the first option.