Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Firms under Perfect Competition

Question:

Supply curve forms a straight line during very short period in case of ____

Options:

Perishable goods

fixed goods

livestock

non-perishable

Correct Answer:

Perishable goods

Explanation:

The correct answer is Option 1: Perishable goods.

Here's why:

  • Very Short Period (Market Period):
    • In the very short period, also known as the market period, the supply of certain goods is fixed. This means that the quantity supplied cannot be changed, regardless of the price.
    • This is particularly true for perishable goods.
  • Perishable Goods:
    • Perishable goods, such as fresh fruits, vegetables, or flowers, cannot be stored for long periods.
    • Once they are produced, they must be sold quickly.
    • Therefore, the supply of these goods is fixed in the very short period, and the supply curve becomes a vertical straight line.