If the price elasticity of supply for a good is equal to infinity,then
A) the supply curve is vertical.
B) the supply curve is horizontal.
C) the supply curve also has a slope equal to infinity.
D) the quantity supplied is constant regardless of the price.

Question

Quizplus · Accepted Answer

If the price elasticity of supply is infinity, it means that any change in price will result in an infinitely large change in quantity supplied. This implies that the supply curve must be perfectly elastic, or horizontal, because any change in price will lead to an immediate and infinite adjustment in the quantity supplied.

If the Price Elasticity of Supply for a Good Is