In the market period, the price elasticity of supply is
A) greater than 1.
B) 0.
C) less than 1.
D) equal to 1.

Question

Quizplus · Accepted Answer

In the market period, the supply of goods is fixed, meaning that producers cannot change the quantity supplied in response to a change in price. Therefore, the price elasticity of supply is 0, as the quantity supplied does not respond at all to price changes in this very short time frame.

In the Market Period, the Price Elasticity of Supply Is