Chapter 5: Q.4 (page 129)
Why is the supply curve with constant unitary elasticity a straight line?
Short Answer
The supply curve with constant unitary elasticity is a straight line because there is a proportional increase in price and quantity.
Chapter 5: Q.4 (page 129)
Why is the supply curve with constant unitary elasticity a straight line?
The supply curve with constant unitary elasticity is a straight line because there is a proportional increase in price and quantity.
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Get started for freeHow is the price elasticity of supply calculated? Explain what it measures?
If the price elasticity of supply is zero, the supply curve is
a. upward sloping.
b. horizontal.
c. vertical.
d. fairly flat at low quantities but steeper at large quantities.
If supply is elastic, will shifts in demand have a larger effect on equilibrium quantity or on price?
If demand is elastic, will shifts in supply have a larger effect on equilibrium quantity or on price?
What is the formula for the cross-price elasticity of demand?
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