If quantity supplied is constant irrespective o... - JAMB Economics 2012 Question
If quantity supplied is constant irrespective of price changes, the supply elasticity is
A
unitary
B
infinity
C
fairly elastic
D
perfectly inelastic
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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.
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