A vertical supply curve is said to be _____.(1 point)
Responses
relatively elastic
relatively elastic
relatively inelastic
relatively inelastic
perfectly elastic
perfectly elastic
perfectly inelastic
relatively inelastic
A vertical supply curve is said to be perfectly inelastic.
To determine whether a vertical supply curve is relatively elastic, relatively inelastic, perfectly elastic, or perfectly inelastic, we need to understand the concept of elasticity.
Elasticity refers to the responsiveness of quantity demanded or supplied to changes in price. It is measured as the percentage change in quantity divided by the percentage change in price.
In the case of a vertical supply curve, it means that the quantity supplied does not change regardless of changes in price. In other words, the suppliers are unable or unwilling to adjust the quantity supplied in response to price changes.
A vertical supply curve represents a situation where the quantity supplied is fixed at a specific level, regardless of the price. This means that the supply is perfectly inelastic. Therefore, the correct answer is "perfectly inelastic."