Economics 9708 · AS & A Level · Price elasticity of supply

Price elasticity of supply — practice question

A firm faces a perfectly elastic supply curve at the market price of $10. Which statement about the firm is true?

  • AAt any price above $10 quantity supplied is zero.
  • BAt any price below $10 quantity supplied is infinite.
  • CAt price $10 the firm will supply any quantity.
  • DAt price $10 the firm will break even.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI