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Question
Draw the supply curve of a perishable commodity. Explain this shape of the supply curve.
Diagram
Explain
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Solution
The supply curve for a perishable good, such as vegetables, is shown as a vertical line along the Y-axis, like the curve SA. These goods must be sold at any price once produced and brought to market, as they cannot be stored. As a result, the quantity supplied stays constant at OA, regardless of whether the price is OPO or OP1.

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Chapter 22: Model Short Answer Questions - MODEL SHORT ANSWER QUESTIONS [Page 458]
