Knowee
Questions
Features
Study Tools

the price elasticity of supply is A. Perfectly inelastic B. Elastic C. Unitary D. Inelastic E. Perfectly elastic

Question

The price elasticity of supply is

A. Perfectly inelastic
B. Elastic
C. Unitary
D. Inelastic
E. Perfectly elastic

🧐 Not the exact question you are looking for?Go ask a question

Solution

To determine the price elasticity of supply, we need to understand the relationship between the percentage change in quantity supplied and the percentage change in price. Here are the steps to identify each type of elasticity:

  1. Perfectly Inelastic (A): The quantity supplied does not change at all when the price changes. The supply curve is vertical. The price elasticity of supply is 0.

  2. Elastic (B): The percentage change in quantity supplied is greater than the percentage change in price. The price elasticity of supply is greater than 1.

  3. Unitary (C): The percentage change in quantity supplied is equal to the percentage change in price. The price elasticity of supply is exactly 1.

  4. Inelastic (D): The percentage change in quantity supplied is less than the percentage change in price. The price elasticity of supply is between 0 and 1.

  5. Perfectly Elastic (E): The quantity supplied changes infinitely with any small change in price. The supply curve is horizontal. The price elasticity of supply is infinite.

To identify the correct option, you need to analyze the specific context or data provided regarding the changes in quantity supplied and price.

This problem has been solved

Similar Questions

YouIf demand is given by q=5P ^-2 where q is quantity demanded and P is price, what isthe price elasticity of demandA) -0.5B) -5C) -2.5D) -2E) -0.4

The price elasticity of demand for a product with high brand loyalty will be;Group of answer choicesPerfectly elasticInelasticinfinite elasticElastic

What is the price elasticity of supply if the supply curve is given by P = 2q? Group of answer choices1234None of the above

The market demand curve for a perfectly competitive industry __.Multiple choice question.slopes downwardis perfectly inelasticis perfectly elasticslopes upward

12.The elasticity for the demand of durable goods is:  A. Zero  B. Equal To Unity  C. Greater Than Unity  D. Less Than Unity

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.