If the Supply of Good a Is Perfectly Elastic, a Decrease

question 42

Multiple Choice

If the supply of good A is perfectly elastic, a decrease in demand will:

• A)​reduce the equilibrium quantity traded, but leave the price unchanged.
• B)​reduce the equilibrium quantity traded, and reduce the price.
• C)​reduce the equilibrium price, but leave the quantity traded unchanged.
• D)​reduce the equilibrium price traded, but increase the quantity traded.

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Definitions:

Median

The middle value of a data set when it is arranged in ascending or descending order.

10th Percentile

A value below which 10% of the data fall, often used in statistics to show lower extremes of a distribution.

Cyclopentanone

A five-membered cyclic ketone, characterized by a ring structure containing one ketone group, used as a precursor in the synthesis of fragrances and pharmaceuticals.

Hydrate

A compound typically formed by the absorption of water molecules into its structure, often resulting in a crystalline form.