The correct answer is A. zero.
The elasticity of supply is a measure of how much the quantity supplied of a good or service changes in response to a change in its price. It is calculated as the percentage change in quantity supplied divided by the percentage change in price.
A supply function is a mathematical relationship that shows how much of a good or service producers are willing and able to supply at different prices. The supply function for a good or service is typically upward-sloping, which means that producers are willing to supply more of a good or service at higher prices.
The supply function of q = 20p is a perfectly inelastic supply function. This means that the quantity supplied does not change at all in response to a change in price. The elasticity of supply for a perfectly inelastic supply function is zero.
Here is a brief explanation of each option:
- Option A: zero. A perfectly inelastic supply function is a supply function where the quantity supplied does not change at all in response to a change in price. The elasticity of supply for a perfectly inelastic supply function is zero.
- Option B: unity. A unitary elastic supply function is a supply function where the percentage change in quantity supplied is equal to the percentage change in price. The elasticity of supply for a unitary elastic supply function is equal to one.
- Option C: more than unity. A supply function with elasticity greater than unity is a supply function where the percentage change in quantity supplied is greater than the percentage change in price. This means that producers are willing to supply more of a good or service in response to a small increase in price.
- Option D: less than unity. A supply function with elasticity less than unity 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube