Suppose That Two Supply Curves Pass Through the Same Point

question 64

Multiple Choice

Suppose that two supply curves pass through the same point.One is steep,and the other is flat.Which of the following statements is correct?

• A)The flatter supply curve represents a supply that is inelastic relative to the supply represented by the steeper supply curve.
• B)The steeper supply curve represents a supply that is inelastic relative to the supply represented by the flatter supply curve.
• C)Given two prices with which to calculate the price elasticity of supply,that elasticity would be the same for both curves.
• D)A decrease in demand will increase total revenue if the steeper supply curve is relevant,while a decrease in demand will decrease total revenue if the flatter supply cure is relevant.

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Definitions:

Depression

A psychological disorder characterized by persistent sadness, loss of interest in activities, and a range of emotional and physical problems.

Mania

A mental health condition characterized by periods of great excitement, euphoria, delusions, and overactivity.

Pessimistic Explanatory

A cognitive style where individuals tend to attribute negative events to stable, internal, and global causes, expecting future failures.

Global

Relating to or encompassing the whole world; worldwide in scope or application.