Supply curve passing through the origin means it has elasticity of: |
>1 one <1 Infinity |
one |
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. |