If a product has a short-run elasticity of supply equal to zero, then an increase in the demand for the product will
A)have no effect on price or quantity sold.
B)increase price and leave quantity sold unchanged.
C)increase price and reduce the quantity sold to zero.
D)leave the price unchanged and reduce the quantity sold.

Question

Quizplus · Accepted Answer

If the short-run elasticity of supply is zero, it means that suppliers cannot change the quantity supplied in response to price changes in the short run. Therefore, if demand increases, the quantity supplied remains unchanged, and the price increases to balance the increased demand with the fixed supply.

If a Product Has a Short-Run Elasticity of Supply Equal