If the supply curve for a product is horizontal, then the elasticity of supply is:
A)equal to zero.
B)equal to one.
C)greater than one but less than infinity.
D)equal to infinity.

Question

If the supply curve for a product is horizontal, then the elasticity of supply is:
A)​equal to zero.
B)​equal to one.
C)​greater than one but less than infinity.
D)​equal to infinity.

Quizplus · Accepted Answer

A horizontal supply curve indicates that the quantity supplied can change by a large amount with no change in price, which is characteristic of perfectly elastic supply, hence an elasticity of supply equal to infinity.

If the Supply Curve for a Product Is Horizontal, Then