Question

If supply curve is a straight line passing through origin

Answer 1

Any straight-line supply curve passing through the origin has unitary elasticity throughout its length, regardless of its slope. ... b) If a 6% drop in the price of a commodity causes a 6% decline in the quantity supplied of the commodity, supply is unitary elastic.

Answer 2

Any straight-line supply curve passing through the origin has unitary elasticity throughout its length, regardless of its slope. ... b) If a 6% drop in the price of a commodity causes a 6% decline in the quantity supplied of the commodity, supplyis unitary elastic.