If foreign producers can supply an infinite amount of tradable goods at the world price, this would imply that the world supply curve is:
A)horizontal.
B)downward-sloping.
C)vertical.
D)upward-sloping.

Question

Quizplus · Accepted Answer

A horizontal supply curve indicates that the supplier is willing to supply any quantity at a given price, which aligns with the scenario of foreign producers supplying an infinite amount of tradable goods at the world price.

If Foreign Producers Can Supply an Infinite Amount of Tradable