Price Elasticity of Supply Is Perfectly Inelastic If the Coefficient

question 72

Multiple Choice

Price elasticity of supply is perfectly inelastic if the coefficient of price elasticity of supply is

• A)infinity.
• B)1.
• C)0.
• D)-1.

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Definitions:

Consumer Surplus

The divergence between what consumers are willing and have the financial capability to pay for a good or service, and what they really pay.

Willingness to Pay

The maximum price at which a consumer will buy a good or service.

Basketball Sneakers

Athletic shoes designed specifically for playing basketball, offering features such as enhanced grip, ankle support, and shock absorption.

Consumer Surplus

The difference between the maximum price consumers are willing to pay and the actual price they do pay.