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JAMB Economics 2001 Question 11

Question 11

Elasticity

A vertical supply curve indicates that

  1. A.the quantity supplied is responsive to price
  2. B.the same fixed quantity will be supplied no matter the price
  3. C.an increase in price will result in an increase in the quantity supplied
  4. D.there is a fixed price for the commodity below which no supply will be made
Show the answer and explanation

Answer: B (the same fixed quantity will be supplied no matter the price)

Explanation

A vertical supply curve means perfectly inelastic supply: the same quantity is supplied at every price.