a
Perfectly inelastic
b
Inelastic
c
Unit elastic
d
Perfectly elastic
e
Elastic
Explanation
Correct Option
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Deez_nut2
2 months ago
Based on the provided figure, the correct answer for the price elasticity of supply at point H is B. Inelastic.
Analysis of the Supply Curve
Geometric Property: When a supply curve is non-linear and convex to the quantity axis, its elasticity at any specific point depends on where a tangent line at that point intersects the axes.
Point H: At point H, the supply curve is becoming increasingly steep. For a curve shaped like this, a tangent line drawn at point H would intersect the horizontal (Quantity) axis. Any supply curve (or tangent to it) that originates from the Quantity axis has a price elasticity coefficient less than one ( E
