Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Firms under Perfect Competition

Question:
When the supply curve is vertical, supply is completely ______ to price and the elasticity of supply is __________ .
Options:
Insensitive, one
Sensitive, one
Insensitive, zero
Sensitive, greater than zero
Correct Answer:
Insensitive, zero
Explanation:
When the supply curve is vertical, supply is completely insensitive to price and the elasticity of supply is zero.