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

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Definitions:

Direct Selling

A retail channel for the distribution of goods and services directly to consumers through face-to-face sales, bypassing traditional retail outlets.

Market Development Strategy

A growth strategy that focuses on selling existing products into new markets or to new segments of customers.

Direct Sellers

Individuals or entities that market and sell products or services directly to consumers, bypassing traditional retail channels.

Direct-Selling Retailers

Retailers that sell products directly to customers away from a static commercial retail location, often through personal interactions or at home.