When a higher price cannot bring about any increase in the quantity supplied, the supply is
A)perfectly elastic.
B)unit elastic.
C)zero.
D)perfectly inelastic.
E)infinity.

Question

Quizplus · Accepted Answer

When a change in price doesn't have any effect on the quantity supplied, it means the supply is perfectly inelastic. This may happen when the production of a good or service requires a fixed amount of resources, such as a unique natural resource or specialized equipment.

When a Higher Price Cannot Bring About Any Increase in the Quantity