If the price elasticity of supply for a good is equal to infinity,then the
A)supply curve is vertical.
B)supply curve is horizontal.
C)supply curve also has a slope equal to infinity.
D)quantity supplied is constant regardless of the price.

Question

Quizplus · Accepted Answer

An infinite price elasticity of supply means that any change in price will lead to an infinite change in quantity supplied. This implies that the supply curve must be horizontal because the quantity supplied changes infinitely with any change in price.

If the Price Elasticity of Supply for a Good Is