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.

---

Definitions:

Pancreas

A glandular organ in the digestive system that produces enzymes to digest food and hormones such as insulin to regulate blood sugar.

Adrenal Cortex

A layer of the adrenal gland responsible for producing steroid hormones, including cortisol and aldosterone.

Adrenal Medulla

The inner part of the adrenal gland that secretes adrenaline and noradrenaline, hormones that help the body respond to stress.

Thyroid Gland

An endocrine gland in the neck that produces hormones regulating metabolism and growth.