If the price elasticity of supply equals zero, this implies that:
A) suppliers can easily change the quantity supplied of the product as the price of the product changes.
B) the period under consideration is a very long time period.
C) the supply curve is perfectly vertical.
D) the percentage change in quantity supplied exceeds the percentage change in product price.

Question

Quizplus · Accepted Answer

An elasticity of zero means that the quantity supplied is completely unresponsive to changes in price. This means the supply curve is perfectly vertical, indicating that no matter what the price, the quantity supplied remains the same.

If the Price Elasticity of Supply Equals Zero, This Implies