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Questions
Draw the supply curve showing price elasticity of supply equal to one.
Draw a straight-line supply curve for the following situation.
Unitary elastic
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Solution
A straight-line supply curve that originates from the origin point has a price elasticity of supply equal to one at all the points. Curves S1 or S2 have a unitary elasticity.
Notes
Students should refer to the answer according to the question.
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RELATED QUESTIONS
Explain briefly the impact of the cost of production on the elasticity of supply.
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- If the quantity supplied of a commodity remain the same whatever its price supply is said to perfectly inelastic.
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| Price | Quantity supplied |
| 10 | 200 |
| 15 | 225 |
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