Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Firms under Perfect Competition

Question:

Supply curve passing through the origin means it has elasticity of:

Options:

>1

one

<1

Infinity

Correct Answer:

one

Explanation:

The correct answer is Option 2: one

Elasticity of Supply: Elasticity of supply measures the responsiveness of quantity supplied to a change in price.

Supply Curve Through Origin: A supply curve that passes through the origin means that the percentage change in quantity supplied is always equal to the percentage change in price.

Unitary Elasticity: When the percentage change in quantity supplied equals the percentage change in price, the elasticity of supply is equal to 1, which is called unitary elasticity.