In the graph, which supply curve has unitary elasticity at every point? Three straight supply curves: S₁ starts at the origin; S₂ starts on the price axis at ₹4; S₃ starts on the quantity axis at 20 units.

In the graph, which supply curve has… — CUET Economics practice

In the graph, which supply curve has unitary elasticity at every point?

Question 44

MediumOriginal question

In the graph, which supply curve has unitary elasticity at every point?

Three straight supply curves: S₁ starts at the origin; S₂ starts on the price axis at ₹4; S₃ starts on the quantity axis at 20 units.

S₂, which starts on the price axisCorrect answerYour answerS₃, which starts on the quantity axisCorrect answerYour answerS₁, which starts at the originCorrect answerYour answerNone of themCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

A straight supply curve through the origin has eₛ = 1 everywhere, whatever its slope.
On it, quantity and price change in the same proportion.

Concept: Supply curve through the origin
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsPrice elasticity of supply

Practise this chapter →

Ten questions from Perfect Competition & Supply, at your own pace.

Practise this chapter →

Ten questions from Perfect Competition & Supply, at your own pace.

In the graph, which supply curve has unitary elasticity at every point?

Question 44

Explanation