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Questions
Draw the supply curve of the following situation:
Elasticity of supply = 0
Draw the supply curve showing price elasticity of supply equal to zero.
Draw a supply curve for the following situations of elasticity of supply:
When elasticity of supply is equal to zero.
Draw a supply curve for the following situations:
When elasticity of supply is equal to zero.
Diagram
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Solution
When Es = 0
When Es = 0, the supply curve is vertical and parallel to the y-axis. In such a case, quantity supplied remains fixed at OQ, whatever the price say OP, OP1 or OP2.
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Notes
Students should refer to the answer according to the question.
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Chapter 5: Supply - Law of Supply and Price Elasticity of Supply - TEST YOURSELF QUESTIONS [Page 98]
