PRC-3 · Chapter 11 · Question 45 of 57
If a geometric supply schedule has a price elasticity of supply exactly equal to 1 at all points, its graph will be:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A straight line passing directly through the origin
Explanation
Any straight-line supply curve that passes exactly through the origin (0,0) possesses a unitary price elasticity of supply (PES = 1) at every single point.
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