If the supply curve intersects the vertical (price) axis, the supply curve has an elasticity:
A) less than 1.
B) equal to 1.
C) greater than 1.
D) that is indeterminate.

Name: If the supply curve intersects the vertical (price) axis, the supply curve has an elasticity: A) less than 1. B) equal to 1. C) greater than 1. D) that is indeterminate.
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Question

Quizplus · Accepted Answer

When the supply curve intersects the vertical axis, it indicates that the supply is perfectly elastic at that point, meaning the elasticity is greater than 1.

If the Supply Curve Intersects the Vertical (Price) Axis, the Supply