What does the elasticity of a perfectly elastic supply curve equal
A)0
B)1
C)infinity
D)a value less than 1 but greater than 0

Question

Quizplus · Accepted Answer

The elasticity of a perfectly elastic supply curve is equal to infinity because any increase in price above the equilibrium price will result in an infinite increase in the quantity supplied as producers are willing to supply an infinite amount at any price above the equilibrium.

What Does the Elasticity of a Perfectly Elastic Supply Curve