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.

---

Definitions:

Experimenter's Bias

A form of bias in research where the outcomes are influenced by the researcher's expectations or preferences.

Confirmation Bias

A cognitive bias that leads individuals to give more weight to evidence that confirms their existing beliefs and dismiss evidence that contradicts them.

Statistical Measure

A value that represents a characteristic of a set of data, such as mean, median, or mode.

Association Coefficient

A statistical measure used to quantify the strength and direction of a relationship between two variables.