Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 5: Q.14 (page 130)

Describe the general appearance of a demand or a supply curve with infinite elasticity.

Short Answer

Expert verified

A demand or supply curve with infinite elasticity is horizontal in shape.

Step by step solution

01

Step 1. Introduction:

Infinite elasticity is an extremely elastic case of demand or supply where quantity varies by an infinite amount due to any variation in price.

02

Step 2. Explanation:

As the quantity demanded or supplied keeps on increasing irrespective of how small the intensity of a price change is, the demand or supply curve with infinite elasticity is horizontal in shape. The demand and supply curves with infinite elasticity are illustrated in the figure below:

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What would the gasoline price elasticity of supply mean to UPS or FedEx?

What is the relationship between price elasticity and position on the demand curve? For example, as you move up the demand curve to higher prices and lower quantities, what happens to the measured elasticity? How would you explain that?

If supply is elastic, will shifts in demand have a larger effect on equilibrium quantity or on price?

If the elasticity is greater than one, is demand elastic or inelastic? If the elasticity equals zero, is demand perfectly elastic or perfectly inelastic?

For each of the following pairs of goods, which good would you expect to have more elastic demand and why?

a. required textbooks or mystery novels

b. Adele recordings or pop music recordings in general

c. subway rises during the next six months or subway rides during the next five years

d. root beer or water
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free