Draw and briefly explain a perfectly elastic supply curve-

Question

Toppr Admin · Accepted Answer

As seen in the figure- a perfectly elastic supply curve is the one in which the supply curve is perfectly horizontal- It is a theoretical curve and such a curve does not actually exist in practice- What the curve actually explains is that a supplier can sell at a particular price an infinite quantity of goods and a small decrease in the price of a quantity can reduce the quantity which is supplied by a supplier to zero because it becomes unprofitable for a supplier to sell at a even a slightly reduced price-

Group A	Group B
1) Perfectly Elastic Supply	a. Vertical supply curve
2) Stock	b. Horizontal supply curve
3) Increase in supply	c. Potential supply
4) Perfectly Inelastic supply	d. Rightward shift in supply curve
5) $\frac{T C}{T Q}$	e. Leftward shift in
	f. Average cost

Draw and briefly explain a perfectly elastic supply curve.