A perfectly inelastic supply relation would be defined as one where the quantity produced remains static under any price change. If we'd plot this curve in the familiar demand-supply framework with price being on the y-axis and quantity on the x-axis, the curve would be vertical.
Perfectly elastic supply curve: The supply of a commodity will be perfectly elastic when its price remain constant but supply changes to any extent.The supply curve will be parallel to x axis.The numerical value of elasticity of supply will be infinity. Perfectly inelastic supply curve: The supply of a commodity will be perfectly inelastic when its supply remain constant but price changes to any extent.The supply curve will be parallel to y axis.The numerical value of elasticity of supply will be zero.
When supply and demand are perfectly elastic/inelastic
Inflation.
Because it is basically curved shape, therefore, there are points/areas on the curve where the demand or supply will be elastic and on some other parts be inelastic. At the top of the curve, demand/supply tends to be inelastic and at the bottom of the curve, it tends to be elastic. Obviously, the more you go up the more we reach the perfectly inelastic demand/supply and the further you go down the curve, the more you reach the perfectly elastic demand/supply
The supply curve during the market period is perfectly inelastic and vertical. This shows that the supply cannot be increased in the short run.
Perfectly elastic supply curve: The supply of a commodity will be perfectly elastic when its price remain constant but supply changes to any extent.The supply curve will be parallel to x axis.The numerical value of elasticity of supply will be infinity. Perfectly inelastic supply curve: The supply of a commodity will be perfectly inelastic when its supply remain constant but price changes to any extent.The supply curve will be parallel to y axis.The numerical value of elasticity of supply will be zero.
When supply and demand are perfectly elastic/inelastic
Inflation.
Because it is basically curved shape, therefore, there are points/areas on the curve where the demand or supply will be elastic and on some other parts be inelastic. At the top of the curve, demand/supply tends to be inelastic and at the bottom of the curve, it tends to be elastic. Obviously, the more you go up the more we reach the perfectly inelastic demand/supply and the further you go down the curve, the more you reach the perfectly elastic demand/supply
The supply curve during the market period is perfectly inelastic and vertical. This shows that the supply cannot be increased in the short run.
When you think about elasticity and inelasticity graphically it always helps me to think of that the end result will be. So I will walk you through my thought process. If supply is inelastic, then no matter the price, supply will always be the same. If price is on the y-axis and quantity is on the x-axis ( as they usually are) then: Perfectly inelastic supply will be represented by a vertical line.
yes the demand curve is perfectly inelastic and horizontal
A perfectly elastic demand curve means that the quantity demanded changes infinitely with a change in price, while a perfectly inelastic demand curve means that the quantity demanded remains constant regardless of price changes.
Price inelastic
In a market with perfectly inelastic supply, the price of a good will not change when there is a decrease in demand for that good.
If production adjustments takes long.
The world supply curve is considered perfectly elastic.