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Commerce · Q123

Economics

Graduate and Post Graduate · Commerce · question 123

Q123

A vertical supply curve parallel to the price axis implies that the elasticity of supply is

A.
Zero
Answer
B.
Infinity
C.
Equal to one
D.
Greater than zero but less than infinity

Answer: Option A

Solution

Answer: Option A
Solution:
A vertical supply curve parallel to the price axis implies that the elasticity of supply is Zero.