1.

Supply is said to be unitary elastic, when :

Answer»

Supply curveis a STRAIGHT line PASSING through theorigin .
Supply curvemakesan intercepton the positiveY-axis.
Supply curve makesan intercepton thepositive X-axis .
Supplycurveis a horizontal strainght line PARALLELTO theX-axis.

Solution :When supply curve passes through origin, its ELASTICITY of supply =1, IRRESPECTIVE of the angle it makes.our correct answer is (A).


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