Under which method ,elasticity of supply depends on the origin of the supply curve? |
percentage method geometric method both of them none of them |
geometric method |
The correct answer is Option 2: geometric method In the geometric method, the elasticity of supply (Es) depends on the origin of the supply curve because: 1️⃣ Elasticity is measured using the intercept on the x-axis (quantity axis). 2️⃣ If the supply curve passes through the origin, the elasticity is always equal to 1 (unitary elastic supply). Thus, elasticity of supply depends on the origin in the geometric method, but not in the percentage method. |