If the quantity supplied of a good is fixed at 100 units at all price levels, then its price elasticity of supply is
A)perfectly elastic.
B)unit elastic.
C)perfectly inelastic.
D)zero.
E)undefined.

Question

Quizplus · Accepted Answer

If the quantity supplied is fixed at 100 units at all price levels, then it means there is no change in the quantity supplied with any change in price. This is the definition of perfectly inelastic supply, where the price elasticity of supply is zero.

If the Quantity Supplied of a Good Is Fixed at 100