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A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is |
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Answer» Infinite A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is Infinite. The horizontal supply curve SHOWS ANOTHER EXTREME case, i.e., that of perfectly inelastic supply. The IMPLICATION of such a supply curve is that a little price cut will cause the quantity supplied to fall to zero while a slightest INCREASE in price will induce purchasers to offer an infinitely large quantity. |
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