If the Supply Curve Is Perfectly Elastic, What Effect Will

question 27

Multiple Choice

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

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

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Definitions:

Unconditioned Stimulus

A trigger that inherently and effortlessly evokes a reaction without the need for previous learning.

Skinner Box

An experimental apparatus designed by B.F. Skinner for studying behavioral conditioning in animals, typically using rewards and punishments.

Aversive Event

An unpleasant or noxious stimulus that an organism seeks to avoid or escape.

Manipulate to Obtain

A strategic action of influencing or controlling someone or something to achieve a desired outcome.