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- Subject
- Supply and Demandeconomics-mcqs › supply-and-demand
- Published
- 29 May 2019
- Last updated
- 28 May 2026
What is the price elasticity of supply for a supply curve that originates from the origin?
Multiple choice question for Supply and Demand. Select an option, then review the explanation below.
Explanation
A supply curve beginning at the origin indicates that the percentage change in quantity supplied matches the percentage change in price, resulting in a price elasticity of supply equal to one.
More Supply and Demand MCQs
Practice related questions from the same subject.
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- 3.How does an increase in marginal cost affect output, and how does an increase in marginal revenue impact output?
- 4.Marginal revenue refers to the ________ resulting from producing an additional ________ of output.
- 5.What are firms generally assumed to do with their costs and profits?