If supply is perfectly inelastic and demand increases,

Name: If supply is perfectly inelastic and demand increases,
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Quizplus · Accepted Answer

When supply is perfectly inelastic, it means that the quantity supplied does not change regardless of the price. Therefore, if demand increases, the price will rise because there is no change in the quantity supplied to meet the increased demand, leading to higher prices for the same amount of goods or services.

If Supply Is Perfectly Inelastic and Demand Increases