Question

1. Which of the following elasticities would be considered unit elastic?
   1. 1
   2. -1
   3. |1|
   4. All of the above

2. We know the law of supply holds if which of the following is true:
   1. When market prices increase, the quantity produced on the market increases
   2. When market prices decrease, the quantity produced on the market increases
   3. When quantity supplied is not affected by price
   4. All of the above

Answer 1

1.Unit elastic in simple terms means that the proportion of change in one variable exactly same as the proportion of change of the other variable

It can have positive or negative value

If the relationship between two type of variable is direct then the value is +1 and if the relationship between two variable is inverse then the value is -1

[1] represents mod 1 which means +1 or -1

Answer is option D

2.

Law of supply in simple terms is when other things are held constant then price and quantity supplied are directly related

It means if price increases then quantity supply will increase and vice versa

So the correct answer here is option A