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Question

A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is?

A
Zero
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B
Infinite
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C
Equal to one
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D
Greater than zero but less than one
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Solution

The correct option is D Infinite
A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is infinite because the supply of the commodity can change to any extent with a small or no change in the price.

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