New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Any straight-line supply curve that has a positive

    horizontal intercept has an elasticity of supply
    A 1 Correct Answer Incorrect Answer
    B Greater than 1 Correct Answer Incorrect Answer
    C Smaller than 1 Correct Answer Incorrect Answer

    Solution

    When Supply curve has a positive vertical intercept its elasticity is greater than 1 and when it has a positive x axis intercept (negative vertical intercept) its elasticity is smaller than 1.

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