Question

2 points
When change in the quantity
supplied is proportionate to the
change in the price, the producer is
said to have
(a) Perfectly elastic supply
O (b) Relatively elastic supply
0 (c) Unitary elastic supply
O (d) Perfectly inelastic supply​

Answer 1

Answer:

here is your answer

Explanation:

When percentage change in quantity supplied is equal to the percentage change in price such that the price elasticity of a supply is equal to one, then supply for such a commodity is said to be unitary elastic. As mentioned, in such a case Es= 1. Further, the supply curve is a straight line passing through the origin...