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The elasticity at a point on a straight line supply curve passing through the origin will be
3.0
1.0
4.0
2.0
- Elasticity of supply is a measure of how much the quantity supplied responds to changes in price.
- On a straight line supply curve passing through the origin, the elasticity of supply is constant.
- The elasticity is calculated as the percentage change in quantity divided by the percentage change in price.
- When a supply curve passes through the origin, elasticity can be derived from the angle it makes with the quantity axis.
- On such a curve, the percentage change in quantity and price are proportional at any point.
- Option 1: 3.0
This would imply a very elastic supply, but not typical for origin-passing curves.
- Option 2: 1.0
When a supply curve passes through the origin, elasticity is typically unitary (1.0).
Correct Answer
- Option 3: 4.0
High elasticity, unlikely for this type of curve.
- Option 4: 2.0
Moderate elasticity, not consistent with curves passing through the origin.
By: santosh ProfileResourcesReport error
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