If the Demand Curve Is Perfectly Elastic, Then an Increase

question 15

Multiple Choice

If the demand curve is perfectly elastic, then an increase in supply will:

• A) decrease the price but result in no change in the quantity exchanged.
• B) increase the quantity exchanged but result in no change in the price.
• C) increase the price but result in no change in the quantity exchanged.
• D) increase both the price and the quantity exchanged.

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Definitions:

Misrepresentation

A false statement of fact made by one party to another, which, while not constituting a term of the contract, induces the other party to enter the contract.

Inducing

The act of persuading or leading someone to undertake a certain action, often with implications in legal contexts like contracts or torts.

Fraud in the Execution

A situation where a person is deceived into signing a document without understanding its nature, existence, or contents.

Innocent Misrepresentation

A false statement made by someone who believes it to be true, which induces another party to enter into a contract.