PRC-3 · Chapter 11 · Question 13 of 57
A rare vintage stamp is being auctioned. There is only one in existence, and no more can ever be produced regardless of how high the bidding price goes. The supply curve for this stamp is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Perfectly inelastic
Explanation
When the quantity supplied is absolutely fixed and cannot respond to price changes (like a unique antique), the supply curve is a vertical line, representing perfectly inelastic supply.
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