Perfectly inelastic (zero elastic) supply, Managerial Economics

Assignment Help:

Perfectly Inelastic (Zero Elastic) Supply

Supply is said to be perfectly inelastic if the quantity supplied is constant at all prices.  The supply curve is a vertical straight line and the elasticity of supply is equal to zero.

When price rises from P1 to P2, quantity supplied stays fixed at q, and when price falls from P2 to P1, quantity supplied stays fixed.

In the case of a price rise, this is the situation of the very short-run or the momentary period which is so short that the quantity supplied cannot be increased, e.g. food brought to the market in the morning.  It is also the case where the commodity is fixed in supply e.g. land.  In the case of a price fall, this is the case of a highly perishable commodity which cannot be stored, e.g. fresh fish.

 


Related Discussions:- Perfectly inelastic (zero elastic) supply

Explain the diminishing marginal utility, Diminishing Marginal Utility ...

Diminishing Marginal Utility Diminishing marginal utility as well is to be held responsible for the rise in demand for a product when its price declines. When an individual pur

Explain about long run production function, Q. Explain about Long run produ...

Q. Explain about Long run production function? Long run is a phase adequately long so that all factors together with capital can be changed. The factors that can be increase

Marginal cost, Marginal Cost This is the increase in total...

Marginal Cost This is the increase in total cost resulting from the production of an extra unit of output.  Thus, if TC n   is the total cost of producing n

Open economy, Open Economy None of the three economies considered so f...

Open Economy None of the three economies considered so far are engaged in trade with Foreign Countries.  Such economies are often referred to as Closed Economies.  In contrast

State the fixed factor of production, State the Fixed factor of production ...

State the Fixed factor of production Input level of a fixed factor can't be varied in the short run. Capital falls under the category of fixed factor. Capital alludes to resour

Resources, “Managerial economics involves use of economic analysis to make ...

“Managerial economics involves use of economic analysis to make business decisions involving the best use of a firm’s scarce resources” Explain the statement with suitable example.

Keynes theory , Keynes Theory Keynes views about trade cycle entitled ...

Keynes Theory Keynes views about trade cycle entitled notes on the trade cycle of his classic the general theory of employment interest and money published in 1936. Although K

The cps data, Using the CPS data, set the sample to women only and regress ...

Using the CPS data, set the sample to women only and regress lnwage on education & MARRIED (which is 1 if married and 0 if not) and 1-MARRIED. Give a 95 percent confidence interval

Explain managerial economics according to mote and paul, Explain Managerial...

Explain Managerial economics according to Mote and Paul Haynes, Mote and Paul:  "Managerial economics refers to those characteristics of economics and its tools of analysis mos

General and selective credit control, General and Selective Credit Control ...

General and Selective Credit Control These are imposed with the full apparatus of the law or informally using specific instructions to banks and other institutions.  For insta

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd