12. Elastic and inelastic supplyThe following graph shows the supply of a good.360Supply180QUANTITY (Units)For esch of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic.RegionElasticInelasticBetween W and XBetween Y and ZTrue or False: For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes less elastic because firms mayneed to invest in additional capital in order to increase production further.O TrueO FalsePRICE (Dollars per unit)

Price elasticity of supply depicts how the seller responds with the change in price of the product…

The following graph shows the supply of a good. 380- Supply 180 80 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 Between V and z True or False: For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes less elastic because firms may need to invest in additional capital in order to increase production further. O True O False PRICE (Dollars per unit)