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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
Draw diagrams when price elasticity of supply is equal to one.
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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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