Option 3: More than 1 -> For a linear supply curve, the elasticity of supply depends on where the extended line intercepts the axes. When a supply curve cuts the price axis at a positive value and (when extended) cuts the quantity axis at a negative value, it indicates a positive price intercept. According to the geometric method of measuring elasticity: if the supply curve (when extended) intersects the price axis above the origin, the price elasticity of supply is greater than 1 (elastic supply). This is because at any point on such a supply curve, a given percentage change in price leads to a larger percentage change in quantity supplied. -> correct
If the supply curve of a good cuts the price axis in its positive range and as we extend the straight line, it cuts the quantity-axis at its negative…
CUET UG 2025 — Economics Micro
2025mcqmedium
If the supply curve of a good cuts the price axis in its positive range and as we extend the straight line, it cuts the quantity-axis at its negative range, the elasticity of supply for the good will be:
Official previous-year question
Held on 21 May 2025 · Verified 13 Jul 2026.
Options
- A
Less than 1.
- B
Equal to 1.
- C
More than 1.
- D
Not defined (infinity).
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