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Question
A vertical supply curve parallel to Y-axis is ______.
Options
perfectly elastic
perfectly inelastic
unitary elastic
inelastic
MCQ
Fill in the Blanks
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Solution
A vertical supply curve parallel to Y-axis is perfectly inelastic.
Explanation:
A vertical supply curve shows that quantity supplied remains fixed regardless of changes in price. Its price elasticity of supply is zero, so supply is perfectly inelastic.
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