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Price Elasticity of Supply on a Graph
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Problem 10
Price Elasticity of Supply on a Graph
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4. Elasticity / Price Elasticity of Supply on a Graph / Problem 3
Problem 3
Why is a supply curve that cuts through the origin considered unit elastic?
A
Because it indicates infinite responsiveness to price changes.
B
Because it indicates a constant supply regardless of price.
C
Because it shows no responsiveness to price changes.
D
Because the percentage change in quantity supplied is equal to the percentage change in price.
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