Suppose the Supply of Product X Is Perfectly Inelastic

question 221

Multiple Choice

Suppose the supply of product X is perfectly inelastic. If there is an increase in the demand for this product, equilibrium price

• A)will decrease, but equilibrium quantity will increase.
• B)and quantity will both decrease.
• C)will increase, but equilibrium quantity will decline.
• D)will increase, but equilibrium quantity will be unchanged.