A perfectly elastic supply curve
A)has no relevance, since real-world supply curves are never perfectly elastic
B)is a horizontal straight line
C)is a vertical straight line
D)is an upward-sloping straight line
E)is not a straight line

Question

Quizplus · Accepted Answer

A perfectly elastic supply curve means that no matter the price, producers are willing and able to supply an infinite amount of the good. This results in a horizontal straight line, as the quantity supplied is the same at any price. While this may not reflect real-world supply curves, it is a useful concept for understanding certain economic principles.

A Perfectly Elastic Supply Curve