Question

If the price elasticity of supply for peaches is 0, then what does mean about peaches? How will the price for the peaches be set in the market?

Answer 1

If the price elasticity of supply of the peaches is zero it means the supply of the peaches doesn't respond to the change in the price. In other words, if the price of the peaches increase or decrease the supply of the peaches doesn't change at all.

IN the real world it mostly relates to the increase in the price of the good. The price of the peaches will be set by the supplier in the market. The supplier will add up the profit they want to earn and the cost of producing peaches to come at the final price they want to sell the peaches at.