If the supply of a good is perfectly inelastic, the price elasticity of supply will equal
A) positive infinity.
B) one.
C) zero.
D) none of the above.

Question

Quizplus · Accepted Answer

If the supply of a good is perfectly inelastic, it means that the quantity supplied does not change even if there is a change in price. In other words, the percentage change in quantity supplied is zero for any percentage change in price. Therefore, the price elasticity of supply (which measures how much the quantity supplied changes in response to a change in price) is zero.

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