If the demand curve shifts but supply curve doesn't & price remains the same supply must be perfectly inelastic?
a. True
b. False
b. False
If the demand curve shifts but the supply curve does not, it does not necessarily mean that the supply is perfectly inelastic. While the price remains the same, it can be due to various reasons such as changes in consumer preferences, income, or expectations. Perfectly inelastic supply means that the quantity supplied does not change regardless of the changes in price. However, in this scenario, we don't have information about the supply elasticity, so we cannot conclude that the supply is perfectly inelastic.