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Explain the Geometric Method of measuring Price Elasticity of Supply.

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Geometrically, elasticity of supply depends on the origin of the supply curve. Assuming the supply curve to be a straight line and positively sloped, we can have three possible situations of elasticity of supply as in the following diagrams:

(i) es = 1, when a straight line, positively sloped supply curve starts from the point of origin.

(ii) es> 1, when a straight line, positively sloped supply curve starts from Y-axis.

(iii) es< 1, when a straight line, positively sloped supply curve starts from X-axis.

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