In the case of perfectly elastic supply, the supply curve is
A) upward sloping.
B) downward sloping.
C) vertical.
D) horizontal.

Question

Quizplus · Accepted Answer

In the case of perfectly elastic supply, a change in price results in an infinite change in quantity supplied. This means that suppliers are willing to supply any quantity at a specific price. Therefore, the supply curve will be perfectly horizontal or flat.

In the Case of Perfectly Elastic Supply, the Supply Curve