Which of the following statements applies to a perfectly elastic supply curve
A)The elasticity of supply is 1.
B)The supply curve is vertical.
C)Very small changes in price lead to large changes in quantity supplied.
D)The firm would likely be operating in the short run.

Question

Quizplus · Accepted Answer

A perfectly elastic supply curve means that any small change in price results in an infinite change in quantity supplied, represented by a horizontal line.

Which of the Following Statements Applies to a Perfectly Elastic