Consider the following straight-line supply curves. In each case, p is the price (measured in dollars per unit) and QS is the quantity supplied of the product (measured in thousands of units per month).
i) p = 2QS
ii) p = 4QS
iii) p = 5QS
iv) p = 10QS
a. Plot each supply curve on a scale diagram. In each case, plot point A (which corresponds to price equal to $20) and point B (which corresponds to price equal to $40).
b. For each supply curve, compute the price elasticity of supply between points A and B.
c. Explain why the slope of a supply curve is not the same as the elasticity of supply.