If the price elasticity of supply is equal to infinity and the price was to fall, the quantity supplied would
A) decrease slightly.
B) fall to zero.
C) not change.
D) increase.

Question

Quizplus · Accepted Answer

If the price elasticity of supply is equal to infinity, it means that the quantity supplied is perfectly elastic, so any change in price will result in a proportionate change in quantity supplied. Therefore, if the price falls, the quantity supplied will decrease all the way to zero.

If the Price Elasticity of Supply Is Equal to Infinity