If the supply curve for a product is horizontal, then what is the elasticity of supply?
A) equal to zero
B) equal to one
C) greater than one, but less than infinity
D) equal to infinity

Question

Quizplus · Accepted Answer

A horizontal supply curve indicates that the quantity supplied can change by a large amount with no change in price, which is characteristic of perfectly elastic supply, hence an elasticity of supply equal to infinity.

If the Supply Curve for a Product Is Horizontal, Then