If the supply of a factor is perfectly inelastic, then
A) the supply curve is horizontal.
B) a fall in price results in no quantity being supplied.
C) sellers will provide whatever quantity is demanded at the going price.
D) no more than the existing quantity can be supplied.

Question

Quizplus · Accepted Answer

When the supply of a factor is perfectly inelastic, it means that the quantity supplied does not change regardless of the price. This is represented by a vertical supply curve, indicating that no more than the existing quantity can be supplied, regardless of changes in price.

If the Supply of a Factor Is Perfectly Inelastic, Then