passwella.
Menu

JAMB Economics 2012 Question 16

Question 16

Elasticity

If quantity supplied is constant irrespective of price changes, the supply elasticity is

  1. A.unitary
  2. B.infinity
  3. C.fairly elastic
  4. D.perfectly inelastic.
Show the answer and explanation

Answer: D (perfectly inelastic.)

Explanation

If quantity does not change at all when price changes, elasticity is zero: perfectly inelastic supply.