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

Question

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?

查看解析

登录即可查看完整答案

类似问题

If a price increase of 6% led to a 4.2 percent increase in quantity supplied, then the price elasticity of supply is

In the context of housing, what does an inelastic supply curve indicate?

Figure 5-6Refer to Figure 5-6. Along which of these segments of the supply curve is supply least elastic?

Figure 5-6Refer to Figure 5-6. Along which of these segments of the supply curve is supply least elastic?

Figure 5-6Refer to Figure 5-6. Along which of these segments of the supply curve is supply least elastic?

The price elasticity of supply tends to be more inelastic as the firm's production facility reaches maximum capacity.

Price rises from $100 to $200 and quantity supplied rises from 200 units to 600 units. PES is _____________.

A product has a PES of +2. If the price falls from £2.00 to £1.50, it supply will __________________

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单