If Two Supply Curves Pass Through the Same Point and One

question 15

Multiple Choice

If two supply curves pass through the same point and one is steep and the other is flat,which of the following statements is correct

• A)The flatter supply curve is more inelastic.
• B)The steeper supply curve is more inelastic.
• C)The steeper supply curve is more elastic
• D)The elasticity of supply will be the same for both curves.

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Definitions:

Thread

In computing, a sequence of executable instructions that can be managed independently by a scheduler.

Variable Cost

Costs that change in proportion to the level of production or business activity. This includes costs like raw materials and direct labor.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating how much each unit sold contributes towards fixed costs and profit.

Break-Even Analysis

An analytical process to determine at what point a business neither makes a profit nor incurs a loss, calculated by equating total costs with total revenues.