If supply is perfectly inelastic, then the price elasticity of supply is infinity.

Name: If supply is perfectly inelastic, then the price elasticity of supply is infinity.
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Question

Quizplus · Accepted Answer

If supply is perfectly inelastic, it means that regardless of changes in price, the quantity supplied remains the same. Therefore, there is no percentage change in quantity supplied with respect to a change in price, leading to an undefined or zero price elasticity of supply, and not infinity.

If Supply Is Perfectly Inelastic, Then the Price Elasticity of Supply