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 equals the percentage change in product price.

Question

Quizplus · Accepted Answer

When price elasticity of supply equals zero, it means the supply curve is perfectly vertical, implying that there is no change in the quantity supplied in response to a change in price. This occurs when the supply is fixed in the short run, and it takes time for suppliers to adjust their production capacity in the long run.

If the Price Elasticity of Supply Equals Zero, This Implies