Advertisements
Advertisements
Question
A linear supply curve starting from the origin making an angle of 75 degree with X-axis will have ______.
Options
Relatively elastic supply
Relatively inelastic supply
Perfectly elastic supply
Unitary elastic supply
Advertisements
Solution
A linear supply curve starting from the origin making an angle of 75 degree with X-axis will have unitary elastic supply.
Explanation:
A linear supply curve starting from the origin and making a steep angle (such as 75 degrees) with the X-axis indicates that the quantity supplied changes by a smaller proportion compared to changes in price. This steep curve suggests that the supply is relatively inelastic, meaning that the elasticity of supply is less than 1.
APPEARS IN
RELATED QUESTIONS
Draw a well-labelled diagram showing the price elasticity of supply of a commodity starting from the origin.
Draw a perfectly elastic supply curve.
Define a relatively elastic supply.
Explain any three factors affecting elasticity of supply.
Identify the elasticity of supply for the following with proper reasoning:
Perishable and durable goods.
What is the degree of elasticity of supply in the diagram?
If price elasticity of supply is greater than 1, then supply is said be elastic.
The given diagram is a case of ______ supply.
The coefficient of elasticity of a commodity is 0.4. What percentage change in supply will take place if its price rises 20%?
With the help of a formula calculate the elasticity of supply from the following table:
| Price | Quantity supplied |
| 10 | 200 |
| 15 | 225 |
The quantity of a commodity supplied increases by 25% when its price rises by 10%. Calculate price elasticity of supply.
Draw and briefly explain a perfectly elastic supply curve.
How is elasticity of supply measured according to the percentage method?
Using graphs, explain any four types of elasticity of supply.
If the price of a commodity falls by 10% and consequently, the quantity supplied decreases by 20%, what will be its elasticity of supply?
Price elasticity of supply of a good is 0.8. Is the supply 'elastic' or 'inelastic', and why?
Draw relatively inelastic supply.
Draw relatively elastic supply.
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es > 1
