The following graph plots a supply curve for some hypothetical good. PRICE (Dollars per unit) 270 135 Between X and Y QUANTITY (Units) True For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic. Region Between V and W False II II Elastic Inelastic 68 99 Supply True or False: As firms reach near maximum capacity at high levels of quantity supplied, supply becomes more elastic because firms may need to invest in additional capital in order to further increase production.

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