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Price Elasticity of Supply on a Graph quiz

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  • What does a perfectly elastic supply curve look like on a graph?
    A perfectly elastic supply curve is represented by a horizontal line on the graph.
  • How is a perfectly inelastic supply curve depicted on a graph?
    A perfectly inelastic supply curve is shown as a vertical line on the graph.
  • What is the main difference in the slope direction between supply and demand curves?
    Supply curves slope upward, while demand curves slope downward.
  • What does it mean if a supply curve cuts through the price axis?
    If a supply curve cuts through the price axis, it indicates elastic supply with elasticity greater than 1.
  • Where does a unit elastic supply curve intersect on a graph?
    A unit elastic supply curve intersects at the origin, where the price and quantity axes meet.
  • What does it mean if a supply curve cuts through the quantity axis?
    If a supply curve cuts through the quantity axis, it represents inelastic supply.
  • How does the steepness of the supply curve change as it becomes more inelastic?
    The supply curve becomes steeper as it transitions from elastic to inelastic.
  • What is the elasticity of supply when the supply curve is perfectly elastic?
    The elasticity of supply is infinite when the supply curve is perfectly elastic.
  • What is the elasticity of supply when the supply curve is perfectly inelastic?
    The elasticity of supply is zero when the supply curve is perfectly inelastic.
  • How can you visually determine the elasticity of a supply curve on a graph?
    You can determine elasticity by observing which axis the supply curve intersects: price axis for elastic, origin for unit elastic, and quantity axis for inelastic.
  • What analogy did the instructor use to help remember perfectly elastic and inelastic supply curves?
    The instructor used the analogy of lying down for perfectly elastic and standing up for perfectly inelastic supply curves.
  • What happens to the supply curve as it transitions from perfectly elastic to perfectly inelastic?
    The supply curve rotates upward, becoming steeper as it moves from perfectly elastic to perfectly inelastic.
  • What is the value of price elasticity of supply for a unit elastic supply curve?
    The price elasticity of supply is exactly 1 for a unit elastic supply curve.
  • How does the rotation of the supply curve differ from the demand curve when moving from elastic to inelastic?
    The supply curve rotates upward due to its positive slope, while the demand curve rotates downward.
  • What is the sequence of supply curve types as elasticity decreases?
    The sequence is: perfectly elastic, elastic, unit elastic, inelastic, and perfectly inelastic.