Question

In general, a steeper supply curve is more likely to be?

1) price elastic
2) none of these answers
3) unit price elastic
4) price inelastic

Answer 1

A steeper supply curve generally indicates that the supply is price inelastic, meaning there is a low responsiveness to changes in price.

Step-by-step explanation:

In general, a steeper supply curve indicates that the supply is less responsive to changes in price; hence it is more likely to be price inelastic. This is due to the fact that when a supply curve is steeper, a significant change in price leads to a smaller relative change in the quantity supplied as compared to a flatter curve. Using this understanding, the correct answer to the question is (4) price inelastic.