Multiple choice

The price of potatoes falls from Rs. 30 to Rs. 20 and potato growers supply the same amount to the shops. The price elasticity of supply is

  1. perfectly inelastic

  2. less elastic

  3. unitary elastic

  4. impossible to calculate

  5. highly elastic
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When the supply does not change with the change in price, PES is perfectly inelastic or zero. In the question, supply of potatoes is not changing with the change in price. Hence, it is the right answer.

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