Suppose Demand Is Perfectly Elastic,and the Supply of the Good

question 277

Multiple Choice

Suppose demand is perfectly elastic,and the supply of the good in question decreases.As a result,

• A)the equilibrium quantity decreases,and the equilibrium price is unchanged.
• B)the equilibrium price increases,and the equilibrium quantity is unchanged.
• C)the equilibrium quantity and the equilibrium price both are unchanged.
• D)buyers' total expenditure on the good is unchanged.

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Definitions:

Apocrine

A type of gland that releases its secretions by pinching off a portion of the cell, found mainly in the underarm and groin area, contributing to body odor when the secretion is broken down by bacteria.

Exocytosis

A cellular process in which substances are moved out of the cell through the fusion of vesicles with the plasma membrane.

Endocrine Gland

Glands of the endocrine system that secrete hormones directly into the bloodstream, regulating various body functions.

Exocrine Gland

A gland that releases its secretions through ducts directly into external environments or internal surfaces, rather than into the bloodstream.