Economics Elasticity Of Supply Questions
The difference between perfectly elastic and perfectly inelastic supply lies in the responsiveness of quantity supplied to changes in price.
Perfectly elastic supply refers to a situation where a small change in price leads to an infinitely large change in quantity supplied. In other words, the supply is extremely sensitive to price changes, and suppliers are willing to supply any quantity at a given price. The supply curve for a perfectly elastic supply is horizontal.
On the other hand, perfectly inelastic supply refers to a situation where quantity supplied remains constant regardless of changes in price. In this case, the supply is completely unresponsive to price changes, and suppliers are unable or unwilling to adjust the quantity supplied. The supply curve for a perfectly inelastic supply is vertical.