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Economics miscellaneous

  1. If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be
    1. less than unity
    2. infinitely large
    3. greater than unity
    4. equal to unity
Correct Option: D

Any straight line supply curve passing through the origin has an elasticity of supply equal to 1. The different types of price elasticity of supply are listed below:



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