2019 · Q25
When some goods or productive (actors are completely fixed in amount, regardless of price, the supply curve is
General KnowledgeIndian Economy
- Ahorizontal
- Bdownward sloping to the right
- Cvertical
- Dupward sloping to the right
Explanation
When the quantity of a good or factor supplied is completely fixed in amount regardless of price, the price elasticity of supply is zero - supply is perfectly inelastic. On a standard diagram with price on the vertical axis and quantity on the horizontal axis, a constant quantity at every price is represented by a vertical line. A horizontal curve would represent perfectly elastic supply, and an upward-sloping curve represents the normal positive relation between price and quantity supplied. Hence option C is correct.