Which of the following would be true as the price elasticity of supply approaches infinity?
A) Very small changes in price lead to very large changes in quantity supplied.
B) Very large changes in price lead to very small changes in quantity supplied.
C) Very small changes in price lead to no change in quantity supplied.
D) Very large changes in price lead to no change in quantity supplied.

Question

Quizplus · Accepted Answer

As the price elasticity of supply approaches infinity, it indicates that the supply is perfectly elastic, meaning that even a very small change in price will result in a very large change in the quantity supplied.

Which of the Following Would Be True as the Price