Supply curve passing through the origin means it has elasticity of:
Answer & explanation
Correct answer: option 2
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.