Question

Identify the elasticity of supply (e_s) of S₁, S₂ and S₃ supply curves:

पर्याय

• All have e_s > 1

• All have _es < 1

• All have e_s = 1

• All have e_s = 0

Answer 1

All have e_s > 1

Explanation:

In graphical presentation, when supply curves begin on the Y axis, the elasticity of supply is greater than 1. A curve beginning on the y axis indicates that even at a price close to zero, suppliers are prepared to deliver a certain number of goods. As the price rises, the quantity supplied grows at a faster rate, indicating high elasticity.