If the supply of a good is perfectly inelastic,then the price elasticity of supply will equal
A) zero.
B) one.
C) greater than zero but less than one.
D) greater than one but less than infinity.
E) negative one.

Question

Quizplus · Accepted Answer

If the supply of a good is perfectly inelastic, it means that the quantity supplied remains the same, regardless of any changes in its price. Therefore, the percentage change in quantity supplied will always be zero, and the price elasticity of supply (PES) will be equal to:

PES = (% change in quantity supplied) / (% change in price)

PES = (0) / (% change in price)

PES = 0

Thus, the best choice is A) zero.

If the Supply of a Good Is Perfectly Inelastic,then the Price