When some goods or productive factors are completely fixed in amount, regardless of price, the supply curve is
[amp_mcq option1=”horizontal” option2=”downward sloping to the right” option3=”vertical” option4=”upward sloping to the right” correct=”option3″]
This question was previously asked in
UPSC CDS-1 – 2019
When the amount of a good or factor is completely fixed regardless of price, the quantity supplied does not change as the price changes. This results in a vertical supply curve.
A supply curve shows the relationship between the price of a good and the quantity supplied at that price. If the quantity supplied is constant irrespective of the price level, the supply curve will be perfectly inelastic.