Question

State whether the following statement is TRUE and FALSE.

Geometric Method is also known as Point Method.

Options

• True

• False

Answer 1

Geometric Method is also known as Point Method. - True

Explanation:
The above statement is correct. The geometric method is also known as point method. This is because geometric method involves determination of supply at different points on the supply curve. This method does not involve any calculation part. Just by looking at the shape of the supply curve, one can infer the degree of the elasticity of supply.