Which of the following statements is not valid when supply is perfectly elastic?
A)The elasticity of supply approaches infinity.
B)The supply curve is horizontal.
C)Very small changes in price lead to very large changes in quantity supplied.
D)The time period under consideration is more likely a short period rather than a long period.

Question

Quizplus · Accepted Answer

Perfectly elastic supply implies that suppliers can increase production to any level at the same cost. Therefore, time is not a constraint and the supply can easily adjust to any level in both short and long periods. So, option D is not valid.

Which of the Following Statements Is Not Valid When Supply