A given supply curve has a zero intercept.At the current equilibrium price the price elasticity of supply equals
A) 1.
B) 0.
C) 2.
D) Not enough information.

Question

Quizplus · Accepted Answer

The price elasticity of supply depends on the slope of the supply curve and the ratio of price to quantity at a specific point. Without information on the slope of the supply curve or the specific price and quantity at equilibrium, we cannot determine the price elasticity of supply.

A Given Supply Curve Has a Zero Intercept