Assertion A Elasticity of supply of gold is unitary elastic Reason R The unitary elastic supply...........

Introductory Microeconomics Theory of firm under perfect Competition

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Assertion (A): Elasticity of supply of gold is unitary elastic.

Reason (R): The unitary elastic supply is equal to one. R

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).

Assertion (A) is true, but Reason (R) is false.

Assertion (A) is false, but Reason (R) is true.

Explanation:

Option (4) is correct.
Explation: When the unitary elastic supply is said to be one when the percentage change in quantity supplied is equal to percentage change in price. Elasticity of supply of gold is
more elastic as percentage change in quantity supplied is greater than percentage change in price

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