If a Supply Curve Is Perfectly Horizontal, What Is the Value

question 176

Short Answer

If a supply curve is perfectly horizontal, what is the value of the price elasticity of supply?

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Definitions:

Security Interest

A legal claim or right granted over an asset to secure the payment of a debt or performance of some other obligation.

Contract Breach

An act of breaking the terms set out in a contract, which can result in legal action for enforcement or damages.

Capacity

Refers to the legal ability of a party to enter into a contract.

Installation

is the process of setting up or assembling a piece of equipment or system in its place of operation.