True or false: To be unit elastic, a supply curve must be a straight line, out of the origin at a 45 degree angle.

To be unit elastic, a supply curve must be a straight line, out of the origin at a 45 degree angle. True. If supply is unit elastic, then each percentage increase in price results in exactly a 1 percent increase in the quantity supplied. This change is only possible when the slope equals 1 (which occurs with a 45 degree line) and starts at the origin.