12. Elastic and inelastic supply The following graph shows the supply of a good. (?) Supply PRICE (Dollars per unit) QUANTITY (Units) For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic. Region Elastic Inelastic Between W and X O Between Y and Z O True or False: For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes more elastic because firms may need to invest in additional capital in order to increase production further. True O False Grade It Now Save & Continue Continue without saving