Use the following to answer question:
Figure 2.9
-(Figure 2.9) The price elasticity of supply at $4 is:
A)0)
B)4)
C) infinity.
D) 0.67.

Question

Use the following to answer question:
Figure 2.9 
-(Figure 2.9) The price elasticity of supply at $4 is:
A)0) 
B)4) 
C) infinity. 
D) 0.67.

Quizplus · Accepted Answer

At a price of $4, the quantity supplied is zero. This means that any percentage change in price (even a small one) will result in an infinite percentage change in quantity supplied. Therefore, the price elasticity of supply at $4 is infinity.

Use the Following to Answer Question