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      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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