As a network expands, the vertical supply curve shifts to the right, and the corresponding demand curve decreases.

Question

Quizplus · Accepted Answer

In economic terms, a vertical supply curve represents a situation where the quantity supplied is completely inelastic and does not change with price. Therefore, as a network expands, it does not cause the vertical supply curve to shift. Additionally, the expansion of a network typically increases demand due to network effects, rather than decreasing it.

As a Network Expands, the Vertical Supply Curve Shifts to the Right