If supply is perfectly elastic, the price elasticity of supply is equal to
A) 1.
B) 0.
C) infinity.
D) a positive number between 0 and infinity.

Name: If supply is perfectly elastic, the price elasticity of supply is equal to A) 1. B) 0. C) infinity. D) a positive number between 0 and infinity.
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Question

Quizplus · Accepted Answer

When supply is perfectly elastic, any change in the price will result in an infinite change in the quantity supplied. Therefore, the price elasticity of supply is equal to infinity.

If Supply Is Perfectly Elastic, the Price Elasticity of Supply