If sellers respond to very small changes in price by adjusting their quantity supplied by extremely large amounts,the price elasticity of supply approaches
A)zero,and the supply curve is horizontal.
B)zero,and the supply curve is vertical.
C)infinity,and the supply curve is horizontal.
D)infinity,and the supply curve is vertical.

Question

Quizplus · Accepted Answer

When the price elasticity of supply approaches infinity, it indicates that the supply is perfectly elastic, meaning that any small change in price leads to an infinitely large change in quantity supplied. This is represented by a horizontal supply curve.

If Sellers Respond to Very Small Changes in Price by Adjusting