ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A horizontal supply curve is said to be perfectly elastic. The price elasticity of supply is greater when the length of time under consideration is longer because over time producers have more options for adjusting to the change in price.

Detailed explanation-2: -A vertical supply curve is said to be perfectly inelastic. A horizontal supply curve is said to be perfectly elastic.

Detailed explanation-3: -Figure %: Elastic and Inelastic Curves At the extremes, a perfectly elastic curve will be horizontal, and a perfectly inelastic curve will be vertical.

Detailed explanation-4: -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.

Detailed explanation-5: -A horizontal demand curve depicts perfect elasticity. This means any slightest change in price can result in an infinite change in QD. thus, the PED is infinity.