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The supply curves passing through the origin are unitary elastic. Defect or refute. |
Answer» Solution :The statement is defended. Any straight line supply curve which passes through the origin has unitray elastic supply. These CURVES (X, Y, Z in the diagram) may make any angle at the origin, the PRICE elasticity of supply of all the curves passing through the origin would be one (can be verified using geometric method DISCUSSED in 'An extra Mile' of the chapter.) 
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