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Home › Bihar Board Class 12 (Arts) › Economics › Producer Behaviour and Supply › A straight-line supply curve cuts the price axis…

A straight-line supply curve cuts the price axis at a positive value. What is its elasticity?

AEqual to one
BLess than one
CGreater than one
DEqual to zero
Answer & Solution
Correct answer: C. Greater than one
Extended backward it meets the quantity axis at a negative value, so the ratio Mq0/Oq0 exceeds one.
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