If the price elasticity of supply equals zero, this implies that:
A) suppliers can easily change the quantity supplied of the product as the price of the product changes.
B) the period under consideration is a very long-run time period.
C) the supply curve is perfectly vertical.
D) the percentage change in quantity supplied exceeds the percentage change in product price.
E) the percentage change in quantity supplied equals the percentage change in product price.

Question

Quizplus · Accepted Answer

A price elasticity of supply of zero means that the quantity supplied does not change at all in response to a change in price. This implies a perfectly vertical supply curve, as no matter how much the price changes, the quantity supplied remains the same.

If the Price Elasticity of Supply Equals Zero, This Implies