The price of a good with a vertical market supply is called

Question

Quizplus · Accepted Answer

Vertical market supply means that the quantity supplied of the good does not respond to changes in its price. In this scenario, the price of the good is determined by the intersection of the demand curve and the vertical supply curve. The price that results from this intersection is known as economic rent, which represents the additional payment for the use of a resource over its opportunity cost. So, the correct answer is B) economic rent.

The Price of a Good with a Vertical Market Supply