A vertical supply curve represents:
A market supply curve is a line drawn on a graph that represents the supply of a particular good or service. It is often used in conjunction with a demand curve. The point at which the supply and demand curves meet is considered the equilibrium price, or the perfect price for supply and demand of that product. S 1 is a vertical, perfectly inelastic, supply curve. This represents 'momentary' supply. In most industries, if a firm was asked to produce a large order immediately, it simply would not be able to do it, regardless of the price offered for the order. Supply is perfectly inelastic in the very short run. In the standard aggregate supply-aggregate demand model, real output (Y) is plotted on the horizontal axis and the price level (P) on the vertical axis. The levels of output and the price level are determined by the intersection of the aggregate supply curve with the downward-sloping aggregate demand curve. The other is the short-run aggregate supply curve. The demand-side of the aggregate market is occupied by the aggregate demand curve. The vertical long-run aggregate supply curve captures the independent relation between real production and the price level that exists in the long run. , the equilibrium price will decrease, and the equilibrium quantity will also decrease. The quantity supplied at each price is the same as before the demand shift, reflecting the fact that the supply curve has not shifted; but the equilibrium quantity and price are different as a result of the change (shift) in demand. To From Subject Comments. Supply curve, in economics, graphic representation of the relationship between product price and quantity of product that a seller is willing and able to supply. Product price is measured on the vertical axis of the graph and quantity of product supplied on the horizontal axis. The quantity supplied at each price is the same as before the demand shift, reflecting the fact that the supply curve has not shifted; but the equilibrium quantity and price are different as a result of the change (shift) in demand. When a market supply curve is vertical, it represents that the quantity of that good is fixed no matter what the price of the good is. D. an unlimited amount of the product will be... show more A supply curve that is a vertical straight line indicates that: A. production costs for this product cannot be calculated. B.the relationship between price and quantity supplied is inverse. C.a change in price will have no effect on the quantity supplied. B.the relationship between price and quantity supplied is inverse. C.a change in price will have no effect on the quantity supplied. D. an unlimited amount of the product will be... show more A supply curve that is a vertical straight line indicates that: A. production costs for this product cannot be calculated.
Momentary supply.