-The above figure shows a graph of the market for pizzas in a large town.Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce only 40 pizzas.As a result,for prices greater than $7,the
A) supply curve is unchanged.
B) supply curve is vertical.
C) demand curve becomes vertical.
D) demand curve becomes horizontal.

Question

-The above figure shows a graph of the market for pizzas in a large town.Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce only 40 pizzas.As a result,for prices greater than $7,the
A) supply curve is unchanged. 
B) supply curve is vertical. 
C) demand curve becomes vertical. 
D) demand curve becomes horizontal.

Quizplus · Accepted Answer

When the government imposes a restriction limiting suppliers to produce only 40 pizzas, the supply becomes perfectly inelastic at that quantity, meaning suppliers will only produce 40 pizzas regardless of the price. This is represented graphically by a vertical supply curve at the quantity of 40 pizzas.

-The Above Figure Shows a Graph of the Market for Pizzas