A perfectly inelastic supply curve is a:
A) vertical line indicating that a very large increase in price will increase the quantity supplied.
B) vertical line indicating that even a very large increase in price won't increase the quantity supplied.
C) horizontal line indicating that a very small increase in price will increase the quantity supplied.
D) horizontal line indicating that even a very small increase in price won't increase the quantity supplied.

Question

Quizplus · Accepted Answer

A perfectly inelastic supply curve means that the quantity supplied remains the same regardless of the change in price. In other words, the supply is fixed and does not respond to the changes in price. This is reflected by a vertical line, and choice B correctly identifies it as indicating that even a very large increase in price won't increase the quantity supplied.

A Perfectly Inelastic Supply Curve Is A