Concept:A supply curve parallel to the
X-axis is horizontal.
A horizontal supply curve indicates infinitely elastic supply.
Explanation:When the supply curve is horizontal, producers are willing to supply any quantity at the same price.
The price remains constant even when the quantity supplied changes.
If the price falls even slightly, the quantity supplied becomes zero.
If the price rises above the fixed level, supply may become unlimited.
This extreme responsiveness of supply to price changes is called perfectly elastic or infinitely elastic supply.
It is opposite to a vertical supply curve, which shows perfectly inelastic supply.
Answer:The correct option is
B: infinitely elastic supply.