A market supply curve has three prices $7.50, $8.00 and $8.50 with a quantity supplied of 6 tonnes at the price of $7,50, 10 tonnes at $8.00, and 14 tonnes at $8.50 a. Is this supply curve a straight line? TO This curve is not a straight line because it does not have a constant slope O This curve is a straight line because it has a constant slope of 0125. O This curve is a straight line because it has a constant slope of 0.25 This curve is a straight line because it has a constant slope of 0.5. b. What is the price elasticity of supply, es, between prices $7.50 and $8.00 and between prices $8.00 and $8.50? Do not round your intenm calculations before obtening the final solution (e, do not clear your calculators in each case, express the number to two decimal places and do not include a positive or negative sign 0 167 not-17 or +1.667) The price elasticity of supply is between prices $7.50 and $8.00, and is between prices $8.00 and $8.50 c. Based on your answers to parts (a) and (b), must a supply curve with a constant slope have a constant numerical elasticity? OA supply curve with a constant slope does not need to have a constant elasticity. DA supply curve whose slope varies must have a constant supply elasticity. < Prev 3 of 6 Next > Activate Windows