If the supply curve of a good is horizontal, then the elasticity of supply is:
A)equal to zero.
B)equal to one.
C)greater than one but less than infinity.
D)equal to infinity.
E)less than one.

Question

Quizplus · Accepted Answer

A horizontal supply curve indicates that the quantity supplied can change by a large amount with no change in price, which is characteristic of perfectly elastic supply, hence an elasticity equal to infinity.

If the Supply Curve of a Good Is Horizontal, Then