Q11 Paintings by Pablo Picasso have significantly increased in value since the artist's death in 1973. Picasso's paintings are often sold through an auction house, allowing many potential buyers to bid on them. Here is the graph of Picasso's paintings Supply Demand C. a. Determine whether the elasticity of supply inelastic, unit elastic or inelastic b. Explain why that level of elasticity exists for the paintings Now assume that incomes INCREASE significantly. Illustrate the effect of the change incomes on your graph. Explain the effect of higher incomes on each of the following 1. The price of Picasso paintings which are a normal good 2. The quantity of Picasso paintings produced