perfectly elastic supply
- noun
- Specialized
:
oferta perfectamente elástica
- In a market with perfectly elastic supply, any price drop will cause the quantity supplied to fall to zero.
Examples
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The textbook illustrates perfectly elastic supply with a horizontal supply curve.
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A perfectly elastic supply means that producers will not supply anything at lower prices.
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If input costs suddenly increase, perfectly elastic supply becomes impossible to maintain.
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In a market with perfectly elastic supply, producers will not sell at any price below the market rate.
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In a market with a perfectly elastic supply, prices can change dramatically.
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A perfectly elastic supply means that if the price decreases even slightly, producers will stop selling their goods.
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When conditions allow for perfectly elastic supply, suppliers are unwilling to accept any price reduction.
Antonyms
How Elastic
- Specialized
- Specialized
Surface Forms
Morphology
The phrase is compositionally interpretable: 'perfectly' (completely) + 'elastic' (highly responsive) + 'supply' (provision of goods) yields the general idea that supplied quantity reacts strongly to price. However, the precise technical meaning — that any price decrease makes quantity supplied drop to zero (a step-like, market-specific behavior) — is specialized economic jargon and not fully predictable for a B1 learner who only knows the constituent words.
Etymology
Perfectly elastic supply uses elastic like a rubber band and supply for what sellers offer. Imagine a rubber band that snaps if you stretch it the wrong way: sellers will only sell at one 'price', so if the 'price' falls even a little they stop selling and 'supply' falls to zero.
