Examveda
Examveda

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

A. Zero

B. Infinity

C. Equal to one

D. Greater than zero but less than infinity

Answer: Option A

Solution(By Examveda Team)

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

This Question Belongs to Commerce >> Economics

Join The Discussion

Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.