When supply is perfectly elastic,the value of the price elasticity of supply is
A)greater than 0 and less than 1.
B)0.
C)1.
D) infinity.

Question

Quizplus · Accepted Answer

When supply is perfectly elastic, any increase or decrease in price will lead to an infinitely large increase or decrease in quantity supplied. Thus, the value of price elasticity of supply, which measures the responsiveness of quantity supplied to changes in price, becomes infinite.

When Supply Is Perfectly Elastic,the Value of the Price Elasticity