Price Elasticity Increases with Flatter Supply Curves

Steps:

• Price elasticity of supply (PES) is the percentage change in quantity supplied divided by percentage change in price; higher PES means more elastic.
• Steeper curves indicate lower PES (less responsive); flatter curves indicate higher PES (more responsive).
• As price rises along a curve, compare slopes: Z is flatter than Y, showing greater responsiveness.
• Thus, Z's PES exceeds Y's PES at higher prices.

Why C is correct:

• Z's flatter slope relative to Y means greater percentage quantity change per price change, per PES definition.

Why the others are wrong:

• A: X is steeper than W, so lower elasticity as price rises.
• B: Y is steeper than X, so lower elasticity as price rises.
• D: Z's changing slope implies varying elasticity, not constant as quantity rises.

Final answer: C