What is the shape of the supply curve when it is perfectly inelastic?

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BlackTom AI · Accepted Answer

To understand the shape of the supply curve when it is perfectly inelastic, recall that inelastic supply means quantity supplied does not change as price changes. This implies the curve does not tilt outward with price increases or decreases; instead, it remains fixed in quantity, producing a vertical line when plotted with price on the y-axis and quantity on the x-axis.
Option a. 'Supply curve will be vertical' matches this characteristic because a vertical line indicates zero percentage change in quantity supplied for any price change.
If there were other options, we would examine them for how they depict responsiveness to price. For example, a downward-sloping or upward-sloping curve would imply some responsiveness, which contradicts perfect inelasticity, and a horizontal curve would imply perfectly elastic quantity supplied, which is not the case here. However, since the provided answer list contains only one choice, there is nothing else to compare within the set.
In general, the key concept is that perfect inelasticity locks quantity at a fixed level regardless of price, producing a vertical supply curve on a standard price-quantity graph.

MCD2090 Macroeconomics - Trimester 2 - 2025

What is the shape of the supply curve when it is perfectly inelastic?

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