BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rising
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Vertical
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Horizontal
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Falling
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Detailed explanation-1: -Perfectly inelastic supply curve is vertical to the y-axis. This implies a change in price will not result in any change in quantity supplied.
Detailed explanation-2: -Figure %: Elastic and Inelastic Curves At the extremes, a perfectly elastic curve will be horizontal, and a perfectly inelastic curve will be vertical.
Detailed explanation-3: -A vertical supply curve is said to be perfectly inelastic. A horizontal supply curve is said to be perfectly elastic.
Detailed explanation-4: -What Does Perfectly Inelastic Mean? When a good has an elasticity of zero it is called “perfectly” inelastic. This means that the supply and/or demand of the product will not change at all even as its price changes.
Detailed explanation-5: -A vertical supply curve indicates that no matter the price, only X amount of a good or service will be offered at market. This seemingly strange phenomenon can occur if: In the spot market (a really, really short period of time) and quantity is limited.