A supply curve that is parallel to the vertical axis suggests that the relevant time period is:
A)the immediate run
B)the short run
C)the long run, and this is an increasing-cost industry
D)the long run, and this is a constant-cost industry
E)the long run, and this is a decreasing-cost industry

Question

Quizplus · Accepted Answer

A supply curve that is parallel to the vertical axis suggests that the quantity supplied cannot be changed in response to a change in price, which is characteristic of the immediate run. In the immediate run, firms have no time to adjust their production levels.

A Supply Curve That Is Parallel to the Vertical Axis