Perfect price elastic supply means

Explanation

This Economics question is asking about what perfect price elastic supply means. In simple terms, it is asking about how much the supply of a product changes when its price changes. The options provide different answers to this question, and we need to choose the correct one.

Option A says that there is no change in supply as price changes. This is not correct because in reality, the supply of a product usually changes when its price changes.

Option B states that any change in price completely stops supply, and this is not true either. If the price of a product increases, suppliers are likely to produce more of it because they can make more profit. Similarly, if the price decreases, suppliers may reduce production as it may no longer be profitable.

Option C says that changes in price double supply, and this is also incorrect. While a decrease in price might encourage suppliers to produce more, it is unlikely that they will double their supply.

Option D is the correct answer. It says that a change in price leads to a proportionate change in supply. This means that if the price of a product increases by a certain percentage, the supply of the product will also increase by the same percentage. Similarly, if the price decreases, the supply will decrease proportionately.

In summary, perfect price elastic supply means that the supply of a product changes proportionately to its price. This is the definition given by Option D, which is the correct answer to the question.