If a college admits only a fixed number of applicants every year, then the school's supply curve for admissions is
A)perfectly elastic.
B)perfectly inelastic.
C)quite flat.
D)downward-sloping.

Question

Quizplus · Accepted Answer

A perfectly inelastic supply curve is vertical, indicating that the quantity supplied is the same regardless of the price. In this case, the fixed number of admissions means the college's supply of admissions does not change with the level of demand, fitting the description of a perfectly inelastic supply.

If a College Admits Only a Fixed Number of Applicants