Use the following to answer questions :
Figure 4-4
-The elasticity of S'S' in Figure 4-4 at equilibrium is negative.

Question

Use the following to answer questions :
Figure 4-4 
-The elasticity of S'S' in Figure 4-4 at equilibrium is negative.

Quizplus · Accepted Answer

The elasticity of supply (S'S' in this context) at equilibrium refers to how responsive the quantity supplied is to a change in price. Elasticity of supply is typically positive because as the price increases, the quantity supplied usually increases as well, indicating a direct relationship between price and quantity supplied.

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