If a fisher must sell all of his daily catch before it spoils for whatever price he is offered once the fish are caught the fisherman's price elasticity of supply for fresh fish is ?
Correct answer: A. zero
- A. zero
- B. infinite
- C. one
- D. unable to be determined form this information
Explanation
After the catch is made, its quantity cannot be increased in response to a higher price because the fish must be sold before spoiling. A fixed quantity supplied has zero price elasticity of supply.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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