question archive If the percentage change in price is equal to zero, and the percentage change in the quantity supplied greater than zero, the supply is said to be: a
If the percentage change in price is equal to zero, and the percentage change in the quantity supplied greater than zero, the supply is said to be: a
Subject:EconomicsPrice:2.88 Bought3
If the percentage change in price is equal to zero, and the percentage change in the quantity supplied greater than zero, the supply is said to be:
a. Perfectly elastic supply.
b. Unit elastic supply.
c. Inelastic supply.
d. Elastic supply.
e. Perfectly inelastic supply.
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The correct answer to the given question is option a. Perfectly elastic supply.
The price elasticity of supply is usually determined by dividing the percentage change in quantity supplied with the percentage change in price for a good or service. If the value of percentage in price is zero but the percentage change in quantity supplied is greater than zero, the value of price elasticity of supply will be infinite. Such supply is called to be a perfectly elastic supply.
