If firms do not increase their quantity supplied when price changes, then supply is
A)perfectly elastic.
B)perfectly inelastic.
C)inelastic.
D)elastic.

Question

Quizplus · Accepted Answer

Perfectly inelastic supply means that the quantity supplied remains the same regardless of any change in the price. Therefore, the firms do not increase their quantity supplied when the price changes, which implies that the supply is perfectly inelastic.

If Firms Do Not Increase Their Quantity Supplied When Price