The quantity supplied and the price of product A are given as follows:

Question: The quantity supplied and the price of product A are given as follows:

Price (Rs Per Kg.)Quantity Supplied (Kgs. in thousands)
4550
5550
6550

Draw a supply curve for the supply schedule and find the type of elasticity of supply using the curve.

Solution:

The supply curve for product A is shown in Figure

Perfectly Inelastic Supply Curve
Figure: Perfectly Inelastic Supply Curve

Above Figure shows that the supply of product A remains constant at 50,000 kgs. However, the price changes from Rs 45 to Rs 65 at the same supply rate. Therefore, the supply of product X is perfectly inelastic (e = 0).