As the price elasticity of supply approaches infinity,very small changes in price lead to
A)very large changes in quantity supplied.
B)very small changes in quantity supplied.
C)no change in quantity supplied.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

When the price elasticity of supply approaches infinity, it means that producers are extremely sensitive to changes in price, and any small increase in price will result in a large increase in quantity supplied. This is because producers can quickly and easily adjust their production to take advantage of the higher prices, resulting in a very elastic supply curve.

As the Price Elasticity of Supply Approaches Infinity,very Small Changes