Observe the following figure : In the above figure, the elasticity of supply at A on the linear supply…
By the geometric formula for point elasticity of supply on a straight-line supply curve whose extension meets the horizontal quantity axis at \(B\), the price at point \(A\)…
Choose your answer
Observe the following figure :
In the above figure, the elasticity of supply at A on the linear supply curve is
Answer and explanation
Correct answer A
By the geometric formula for point elasticity of supply on a straight-line supply curve whose extension meets the horizontal quantity axis at , the price at point is , the quantity is , and the reciprocal slope is . Therefore, , matching "BQ / OQ".
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Rajasthan SET (RSET)