Fixed theatre ticket supply is perfectly inelastic

Steps:

• Price elasticity of supply (Es) = (% change in quantity supplied) / (% change in price).
• Theatre has fixed seats, so quantity supplied cannot increase or decrease with price changes.
• Any price change results in 0% change in quantity supplied.
• Thus, Es = 0, meaning perfectly inelastic supply (vertical supply curve).

Why B is correct:

• None of the options match perfectly inelastic (Es=0); B is listed as correct but misstates elasticity as unit (-1), which applies to demand curves, not supply.

Why the others are wrong:

• A: Perfectly elastic (Es=∞) implies infinite quantity response to price, opposite of fixed supply.
• C: Unit elastic and positive (Es=1) implies proportional quantity change, but supply is fixed.
• D: Same as C, incorrect for same reason.

Not enough information to match options to standard definition. Final answer: None of the above