When a supply curve is relatively flat,
A) sellers are not at all responsive to a change in price.
B) the equilibrium price changes substantially when the demand for the good changes.
C) the supply is relatively elastic.
D) the supply is relatively inelastic.

Question

Quizplus · Accepted Answer

When a supply curve is relatively flat, it means that a small change in the price of the good will lead to a larger change in the quantity supplied. This suggests that the supply is relatively elastic, meaning that sellers are responsive to changes in price. This is because producers can easily adjust their production levels to respond to changes in price without significant cost increases.

When a Supply Curve Is Relatively Flat