A perfectly elastic supply curve
A) is vertical.
B) is horizontal.
C) is downward sloping.
D) is backward bending.
E) has an infinite slope.

Question

Quizplus · Accepted Answer

A perfectly elastic supply curve means that the quantity supplied is infinitely responsive to changes in price. This results in suppliers being able to supply any quantity demanded at a constant price. Therefore, the supply curve is horizontal, with an infinite slope.

A Perfectly Elastic Supply Curve