Advertisements
Advertisements
Question
When a straight-line supply curve cuts the y-axis, the elasticity of supply will be ______.
Options
Elastic
Inelastic
Unitary elastic
Perfectly inelastic
Solution
When a straight-line supply curve cuts the y-axis, the elasticity of supply will be Elastic.
Explanation:
It relies on the geometric approach. When the supply curve intersects the Y-axis, the supply elasticity is considered elastic.
APPEARS IN
RELATED QUESTIONS
Explain any one factor that affects the supply of a commodity.
Why is creeping inflation considered good for an economy?
Define supply.
Discuss the effects of inflation on Fixed income groups
Discuss the effects of inflation on Producers.
Give two assumptions of the law of supply.
With the help of a suitable diagram, explain the contraction of supply.
The demand curve which indicates the inverse relationship between price and demand ______.
In the percentage increase in the quantity of a commodity is smaller than the percentage fall in its price, the coefficient of price elasticity of demand is ______.
How does demand differ from want?
