A situation in which there is a reduction in quantity supplied to zero when there is the slightest decrease in price is
A) perfectly elastic supply.
B) perfectly elastic demand.
C) perfectly inelastic supply.
D) perfectly inelastic demand.

Question

Quizplus · Accepted Answer

Perfectly elastic supply means that any decrease in price leads to the quantity supplied dropping to zero, indicating suppliers are only willing to supply at a specific price.

A Situation in Which There Is a Reduction in Quantity