Question

if a fisherman must sell all of his daily catch before it spoils for whatever price he is offered, once the fish are caught, the fishermans price elasticity of supply for fresh fish is
a. one.
b. zero.
c infinite.
d. unable to be determined from this information.

Explanation:

Price elasticity of supply measures how much quantity supplied changes with price. Here, the fisherman's quantity supplied is fixed (all caught fish must be sold, no change in quantity regardless of price). A fixed quantity means supply is perfectly inelastic, which has an elasticity of zero.

Answer:

b. zero.