Question

Supply is said to be unitary elastic, when :
A. Supply curve is a straight line passing through the origin .
B. Supply curve makes an intercept on the positive Y-axis.
C. Supply curve makes an intercept on the positive X-axis .
D. Supply curve is a horizontal strainght line parallel to the X-axis.

Answer 1

Correct Answer - A
When supply curve passes through origin, its elasticity of supply =1, irrespective of the angle it makes. our correct answer is (A).