If the Demand Curve Is Perfectly Elastic, What Will an Increase

question 42

Multiple Choice

If the demand curve is perfectly elastic, what will an increase in supply result in?

• A) an increase in the price, but no change in the quantity exchanged
• B) an increase in the quantity exchanged, but no change in the price
• C) a decrease in the price, but no change in the quantity exchanged
• D) an increase in both the price and the quantity exchanged