Suppose Demand Is Perfectly Elastic,and the Supply of the Good

question 277

Multiple Choice

Suppose demand is perfectly elastic,and the supply of the good in question decreases.As a result,

• A)the equilibrium quantity decreases,and the equilibrium price is unchanged.
• B)the equilibrium price increases,and the equilibrium quantity is unchanged.
• C)the equilibrium quantity and the equilibrium price both are unchanged.
• D)buyers' total expenditure on the good is unchanged.

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Definitions:

Past Work

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Statute of Frauds

A legal principle requiring certain contracts to be in writing to be legally enforceable, such as contracts for the sale of land.

Consideration

The value (such as money, service, or goods) that is promised by one party to another in exchange for performing or promising to perform an act.

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An agreement to accept an offer based on specific conditions being met.