If supply is perfectly elastic, then the supply curve must
A)be vertical.
B)be horizontal.
C)be upward sloping.
D)be downward sloping.
E)have a slope of zero.

Question

Quizplus · Accepted Answer

If supply is perfectly elastic, then any increase or decrease in price will not affect the quantity supplied by producers. Therefore, the supply curve must be represented by a horizontal line at the quantity supplied at any given price.

If Supply Is Perfectly Elastic, Then the Supply Curve Must