Multiple choice

For perfectly inelastic supply curve, elasticity value is

  1. one

  2. zero

  3. infinite

  4. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Perfectly inelastic supply means quantity supplied does not change at all when price changes, which corresponds to an elasticity value of zero. A perfectly elastic (horizontal) supply curve would have infinite elasticity. Elasticity of 1 indicates unit elasticity, not perfect inelasticity.