Question

mework (Ch 05) + + PRICE (Dollars per unit) + + w 0 10 20 30 70 80 40 50 60 QUANTITY (Units) 90 100 Using the graph, complete the table that follows by indicating whether each statement is true or false. Statement True False Between points A and B, curve II is perfectly inelastic. Curve KK is less elastic between points A and C than curve is between points A and D. Between points A and C, curve KK is elastic.

Answer 1

1.

True

Here the curve Ab is perfectly inelastic in nature because change in quantity demanded is zero

If the curve is to be perfect elastic can change in price has to be zero.

2.

True

Since the given curve is of a supply curve

A curve is said to be inelastic when even there is very high change in the price but change in supply is very less

A curvr is said to be elastic if even there is a very small change in price cause heavy change in the quantity supplied

In the given curve we can clearly see that more curve KK is as more inelastic compared to curve JJ

3

True

The curve KK between point a and c is elastic in nature

as we can clearly see that even there is a small change in price causes heavy change in the quantity supplied