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 is provided.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures how much the quantity supplied of a good responds to a change in the price of that good. It is calculated as the percentage change in quantity supplied divided by the percentage change in price. Without specific information about the slope of the supply curve or how quantity supplied changes with price, we cannot determine the price elasticity of supply, even if the supply curve has a zero intercept.

A Given Supply Curve Has a Zero Intercept