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Question
Choose the correct answer from given options
If the supply curve is a straight line parallel to the vertical axis (Y-axis), supply of the good is called as _________.
Options
Unitary Elastic Supply
Perfectly Elastic Supply
Perfectly Inelastic Supply
Perfectly Elastic Demand
Solution
If the supply curve is a straight line parallel to the vertical axis (Y-axis), supply of the good is called as Perfectly Inelastic Supply.
Hence, the correct answer is option Perfectly Inelastic Supply.
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