What is a perfectly inelastic supply?
What is a perfectly inelastic supply? Perfect inelastic supply is when the PES formula equals 0. That is, there is no change in quantity supplied when the price changes. Examples include products that have limited quantities, such as land or painting from deceased artists. Is a perfectly inelastic supply curve vertical? This refers to when only one quantity of a good can be supplied at any given price. As a result this means the price elasticity of supply (PES) value is equal to 0. The supply curve is vertical at the specific quantity supplied of Qs. ... Is perfectly inelastic...