A market supply curve has three prices  $4.50, $5.00 and $5.50   with a quantity supplied of 7 tonnes at the price of $4.50, 9 tonnes at $5.00, and 11 tonnes at $5.50.

a. Is this supply curve a straight line?


b. What is the price elasticity of supply, es, between prices $4.50 and $5.00 and between prices $5.00 and $5.50? Do not round your interim calculations before obtaining the final solution (i.e. do not clear your calculator).The price elasticity of supply is  between prices $4.50 and $5.00, and is  between prices $5.00 and $5.50.

c. Based on your answers to must a supply curve with a constant slope have a constant numerical elasticity?

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a Is this supply curve a straight line No the supply curve is not a straight line The price elastici... View the full answer