ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The PES for perfectly elastic supply is infinite, where the quantity supplied is unlimited at a given price, but no quantity can be supplied at any other price.

Detailed explanation-2: -Infinite elasticity or perfect elasticity refers to the extreme case where the quantity demanded changes by an infinite amount in response to any change in price at all. In this case, the demand curve is horizontal as Fig 6.4 A shows. Perfectly elastic demand is an extreme example.

Detailed explanation-3: -Refers to goods that have a price elasticity of supply value equal to infinity. This essentially means that any amount of a good will be supplied at the prevailing price, but nothing is supplied below this prevailing price.

Detailed explanation-4: -Perfectly elastic means the response to price is complete and infinite: a change in price results in the quantity falling to zero.

Detailed explanation-5: -A perfectly (or infinitely) elastic demand curve refers to the extreme case in which the quantity demanded (Qd) increases by an infinite amount in response to any decrease in price at all. Similarly, quantity demanded drops to zero for any increase in the price.