Question

Can you think of an industry (or product) with near infinite elasticity of supply in the short term? That is, what is an industry that could increase Qs almost without limit in response to an increase in the price? 2

Answer 1

Such an industry will be very close to a perfectly competitive industry. For such industry to survive, there must be minimal entry barriers, very small startup cost, identical good produced by the entire industry, and no market power to a single representative firm. Industries that use agricultural inputs such as bread makers, juice makers, sauce makers as well as those selling pizza and hotdogs, can represent an industry with infinite elasticity of supply in the short run.