Question

what does a vertical supply curve imply?(1m)

Answer 1

$hy friend$

This is a situation where there is a fixed quantity being supplied. This might occur because there is a fixed supply that can never be changed

example

there are only 200 seats in the theater.

Another possibility is that the supply is being provided by a monopoly that has determined the quantity that maximizes their profits and the monopoly only supplies that amount (determined where their marginal costs equals their marginal revenue). The monopolist could supply more but stops production where their profits are maximized.

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Answer 2

A supply curve shows the relationship of price of the product and the quantity the producer is willing and able to supply. The supply curve is generally positive sloped. This means as price rises, the quantity supplied in market also rises. If price decreases so does the quantity supplied in the market.

A vertical supply curve shows that the quantity to be supplied is fixed from the producers side. The curve is known as a perfectly inelastic supply curve. The producers can charge any price for the product. Thus these types of products include rare and scare items for which the producer can easily charge any price it wants.