If Supply Is Perfectly Inelastic, Then the Price Elasticity of Supply

question 154

True/False

If supply is perfectly inelastic, then the price elasticity of supply is infinity.

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Definitions:

Net Income

The net income of a company once all costs and taxes are subtracted from its total revenue.

Equity Shares

Equity Shares represent ownership in a company, granting shareholders voting rights and a share in the company's profits through dividends.

Market Price

The current price at which an asset or service can be bought or sold in a open market.

Rights Offering

A method by which a company raises capital by giving existing shareholders the right to purchase additional shares at a discount to the market price.