A supply curve that starts at the origin has ?
Correct answer: B. A price elasticity of supply equal to one
- A. A price elasticity of supply greater than one
- B. A price elasticity of supply equal to one
- C. A price elasticity of supply less than one
- D. A positive price elasticity of supply
Explanation
For a straight-line supply curve passing through the origin, the percentage change in quantity supplied equals the percentage change in price, so elasticity is exactly one. This differs from a straight-line curve that does not pass through the origin, where elasticity varies along the curve.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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