The percentage change in price is 5%, while the price elasticity of supply is 0. The percentage change in quantity supplied:
A) is 1.5%.
B) does not change.
C) is 2%.
D) is -3%.
E) is -7%.

Question

Quizplus · Accepted Answer

If the price elasticity of supply is 0, it means that the quantity supplied is completely unresponsive to changes in price. Therefore, the percentage change in quantity supplied will not change regardless of the percentage change in price. Therefore, the answer is B.

The Percentage Change in Price Is 5%, While the Price