Definitions
There is 1 meaning of the phrase
Perfectly Elastic Supply.
Perfectly Elastic Supply - as a noun
A market situation in which even a minuscule decrease in the price of a good or service drops the supply for the good or service to zero.
Example Sentences
"The availability of raw materials ensures a perfectly elastic supply of goods."
"In a competitive market, if a producer raises the price, consumers will switch to substitutes due to the perfectly elastic supply."
"The demand for hand sanitizer skyrocketed during the pandemic, causing a perfectly elastic supply as manufacturers ramped up production."
"A perfectly elastic supply curve indicates that even a slight increase in price will cause an infinite increase in quantity supplied."
"Due to advanced farming techniques and subsidies, agricultural markets often exhibit a perfectly elastic supply."
