A vertical supply curve exhibits
A) a constant elasticity of supply.
B) a perfectly inelastic supply curve.
C) Both A and B are true.
D) None of the above.

Question

Quizplus · Accepted Answer

A vertical supply curve means that the quantity supplied does not change in response to changes in price. This means that the elasticity of supply is zero, which is a constant elasticity. It also means that the supply curve is perfectly inelastic, which is another way of saying that the quantity supplied does not change in response to changes in price.

A Vertical Supply Curve Exhibits