Figure 5-11

-Refer to Figure 5-11.Which supply curve represents perfectly inelastic supply?
A)S₁
B)S₂
C)S₃
D)It is impossible to tell without more information.

Question

Figure 5-11
 
-Refer to Figure 5-11.Which supply curve represents perfectly inelastic supply?
A)S₁ 
B)S₂ 
C)S₃ 
D)It is impossible to tell without more information.

Quizplus · Accepted Answer

A perfectly inelastic supply means that the quantity supplied remains constant regardless of changes in price. This is represented by a vertical supply curve, which is only shown in curve S₁ in the given figure. Therefore, the correct answer is A) S₁.

Figure 5-11 -Refer to Figure 5-11.Which Supply Curve Represents Perfectly Inelastic Supply