Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x . Assume that P = $8, I = 200, and P x = $10.
-There are some special types of goods for which supply cannot change, irrespective of the length of time allowed for change, such as Beethoven symphonies. The price elasticity of supply for these goods is _____.
A)infinite
B)nonexistent
C)negative
D)zero
E)unity

Question

Quizplus · Accepted Answer

The price elasticity of supply for goods with fixed supply, such as Beethoven symphonies, is zero. This means that no matter how much the price of the good changes, the quantity supplied remains constant.

Scenario 5.1 The Demand for Noodles Is Given by the Following Equation