ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When the supply curve is vertical, it means that suppliers supply the same quantity at all prices. No matter the price change, the quantity supplied does not change. Therefore, the supply is perfectly inelastic and the price elasticity of supply is equal to zero.

Detailed explanation-2: -A vertical supply curve, as shown in Panel (a) of Figure 3.11 “Supply Curves and Their Price Elasticities”, is perfectly inelastic; its price elasticity of supply is zero.

Detailed explanation-3: -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. Was this answer helpful?

Detailed explanation-4: -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: -Supply is price inelastic if the price elasticity of supply is less than 1; it is unit price elastic if the price elasticity of supply is equal to 1; and it is price elastic if the price elasticity of supply is greater than 1. A vertical supply curve is said to be perfectly inelastic.