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:

Mundane Realism

The degree to which the conditions of an experiment mimic the real-world settings to which its results can be applied.

Experimental Realism

The extent to which experiment conditions mimic real-life situations, enhancing the validity of the findings.

Mundane Realism

The degree to which an experiment is superficially similar to everyday situations, enhancing its external validity.

Literary Digest

Literary Digest was a general interest magazine in the United States that published from 1890 until 1938, known for its flawed public opinion poll about the 1936 presidential election.