Question 51
HardOriginal questionRead the two statements and choose the correct option.
I. A vertical supply curve is perfectly inelastic.
II. A horizontal supply curve is perfectly elastic.
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
Vertical: the quantity does not change with price, eₛ = 0. I is true.
Horizontal: any quantity at one price, eₛ = ∞. II is true.
- Concept
- Extreme supply curves
- Typical timeTypical
- 100 s
- Your timeYours
- —
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