Tag: supply - law of supply and price elasticity of supply

False. When a straight line upward sloping supply curve shoots from the X-axis, elasticity of supply $({E} _{s})< 1$

False. Longer the time period, greater will be the elasticity of supply. Because, over a long period of time, more and more factors are easily available and their input can be changed to increase (or decrease) output of the commodity.

False. If elasticity of supply $=0$, supply curve becomes a vertical straight line parallel to Y-axis.

False. When a straight line upward sloping supply curve shoots from the Y-axis, elasticity of supply $({E} _{s}>1)$

While a 45-degree line through the origin has an elasticity of 1, it is not the only case. Any straight-line supply curve passing through the origin has an elasticity of 1, regardless of the specific angle, as long as it is linear and originates from (0,0).

True. When a straight line upward sloping supply curve passes through the origin (no matter what the angle it forms), the elasticity of supply is equal to one.

True.
The price will remain unchanged under a perfectly elastic supply curve, no matter demand increases or decreases. This is because supply responds proportionately to the increase or decrease in demand, i.e., it only changes on the quantity axis, while, it is static on the price axis at a given price.

Elasticity of supply measures the degree of responsiveness of the quantity supplied of a commodity to a change in its price.

Elasticity of supply is the counterpart to the elasticity of demand, as both measure the responsiveness of quantity to price changes for their respective curves.

Unitary elasticity occurs when the percentage change in quantity supplied is exactly equal to the percentage change in price.