Question on: JAMB Economics - 2012
If quantity supplied is constant irrespective of price changes, the supply elasticity is
A
unitary
B
infinity
C
fairly elastic
D
perfectly inelastic
Ask EduPadi AI for a detailed answer
Correct Option: D
The question describes a situation where the quantity supplied does not change regardless of price fluctuations. This scenario directly reflects the definition of perfectly inelastic supply.
- Perfectly Inelastic Supply: Quantity supplied remains the same, no matter the price change. The elasticity of supply is zero.
- Unitary Elasticity: Percentage change in quantity supplied equals the percentage change in price.
- Infinity (Perfectly Elastic): Quantity supplied changes infinitely with any price change.
- Fairly Elastic: Supply is responsive to price changes, but not to an extreme degree.
Add your answer
Please share this, thanks!
No responses