A supply curve that is parallel to the horizontal axis suggests that: the industry is organized monopolistically. the relationship between price and quantity supplied is inverse. a change in demand will change price in the same direction. a change in demand will change the equilibrium quantity but not price.
Added by Mark F.
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This is a perfectly elastic supply curve, meaning that suppliers are willing to supply any amount at a certain price, but no amount at any other price. This does not necessarily suggest that the industry is organized monopolistically. Monopolies often have Show more…
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