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Question
Indicate the degree of elasticity of a supply curve parallel to the X-axis.
Solution
A horizontal straight line supply curve which is parallel to the x-axis shows an infinite supply corresponding to a particular price. When Es = ∞, even a minute change in price will cause an infinite change in quantity. Hence, the elasticity of the supply curve is parallel to the x-axis.
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Elasticity of Demand and Elasticity of Supply
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