Question

When a supply curve a) intersects the​ origin, the good has an elasticity of supply equal...

When a supply curve

a) intersects the​ origin, the good has an elasticity of supply equal to zero.

b) is​ vertical, the good has an elasticity of supply equal to infinity.

c) intersects the​ origin, the good has an elasticity of supply that is negative.

d) is​ horizontal, the good has an elasticity of supply equal to zero.

e) intersects the​ origin, the good has an elasticity of supply equal to 1.

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Answer #1

Answer : e) intersects the​ origin, the good has an elasticity of supply equal to 1.

..

Elasticity of supply = %change in quantity supplied/ % change in price

.

A horizontal supply curve means that the elasticity of supply is infinity

A vertical supply curve means that the elasticity of supply is zero, as no change in quantity supplied with change in price

When supply curve intersect the origin this means that the % change is quantity supplied is equal to the % change in price so elasticity of supply is 1.

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