Table 5-10

-Refer to Table 5-10. Using the midpoint method, which of the three supply curves has the most elastic price elasticity of supply?
A)Supply curve X
B)Supply curve Y
C)Supply curve Z
D)There is no difference in the elasticity of the three supply curves.

Question

Table 5-10
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-Refer to Table 5-10. Using the midpoint method, which of the three supply curves has the most elastic price elasticity of supply?
A)Supply curve X 
B)Supply curve Y 
C)Supply curve Z 
D)There is no difference in the elasticity of the three supply curves.

Quizplus · Accepted Answer

The midpoint method calculates elasticity by averaging the starting and ending prices and quantities. Supply curve X has the most elastic price elasticity of supply because it shows the greatest percentage change in quantity supplied for a given percentage change in price compared to the other curves.

Table 5-10 ​

Table 5-10