Question

Supply curves can have varying degrees of price elasticity. Show graphically a perfectly elastic, a perfectly inelastic, and a unit-elastic supply curve. ata Ta On Graph 1: 1.) Using the line drawing tool, draw a supply curve that is perfectly elastie. Label your curve 'Sperfectly Elastic Price martin Carefully follow the instructions above and only draw the required object Quantity

Answer 1

A perfectly elastic supply would be a horizontal line parallel to the X axis, in the perfectly elastic supply situation any decrease in the price of the product would decrease the quantity supplied to zero.

In the case of a perfectly inelastic supply , the supply curve will be a vertical straight line. The perfectly inelastic supply means the price does not have any effect on the quantity supplied.

s= Perfectly inealstic Price Price s= perfectly elastic X X Qunatity Quantity