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.

---

Definitions:

Diplomatic Feelers

Initial, informal actions or communications sent through diplomatic channels to gauge the reaction or intentions of another country or entity before making formal proposals.

North Vietnamese Forces

refers to the military and paramilitary forces of North Vietnam, notably during the Vietnam War, fighting against South Vietnam and its allies, including the United States.

Tet Offensive

The Tet Offensive was a major campaign of attacks launched by the Viet Cong and North Vietnamese forces in early 1968, significantly affecting public perception of the Vietnam War.

Khe Sanh

The site of a significant battle of the Vietnam War in 1968, where US forces withstood a prolonged siege by the North Vietnamese Army in a strategically important location.