Question

3. Is the supply curve shallow or steep? What does this mean about the elasticity of supply for

Answer 1

Answer:

If the supply curve is very steep, then supply is inleastic. This means that price changes do not affect the quantity supplied too much, or in other words, that the quantity supplied changes less than the price.

On the other hand, if the supply curve is shallow or almost flat, then supply is elastic. This means that supply changes more than price.