Explain the concept of perfectly inelastic supply.

Explain the concept of perfectly inelastic supply.

Perfectly inelastic supply refers to a situation in which the quantity supplied of a good or service remains constant regardless of changes in its price. In other words, the supply curve is vertical, indicating that producers are unable or unwilling to adjust the quantity supplied in response to price changes. This occurs when there are no available substitutes for the inputs used in production, or when there are physical constraints that prevent producers from increasing or decreasing output. As a result, the price elasticity of supply is zero in this case.