If a linear supply curve has a zero intercept, the elasticity of suppl

If a linear supply curve has a zero intercept, the elasticity of supply is always unitary.

Indicate whether the statement is true or false

ANSWER

True . A linear supply curve from the origin takes the form Q = ap. Elasticity equals a ∗ p/Q. Substituting for Q yields a ∗ p/ap. Numerator and denominator cancel and the elasticity equals one at every price.