why does the supply curve having elasticity greater tgan 1,shoots from y axis??
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Heya..
Because elasticity line shooting from 1 is dividing quantity supplied and price equally means how much price change in response supply changes equally..
Now ur ques....
Curve shooting from Y axis have greater elasticity means supply is changing more than price changes...Y axis means greater value in change of the tendency of producer to change it's supply when price changes..
Because elasticity line shooting from 1 is dividing quantity supplied and price equally means how much price change in response supply changes equally..
Now ur ques....
Curve shooting from Y axis have greater elasticity means supply is changing more than price changes...Y axis means greater value in change of the tendency of producer to change it's supply when price changes..
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