QuestionMay 25, 2025

If the demand curve is perfectly elastic, then an increase in supply will: decrease the price but result in no change in the quantity exchanged. increase the quantity exchanged but result in no change in the price. increase the price but result in no change in the quantity exchanged. increase both the price and the quantity exchanged.

If the demand curve is perfectly elastic, then an increase in supply will: decrease the price but result in no change in the quantity exchanged. increase the quantity exchanged but result in no change in the price. increase the price but result in no change in the quantity exchanged. increase both the price and the quantity exchanged.
If the demand curve is perfectly elastic, then an increase in
supply will:
decrease the price but result in no change in the quantity
exchanged.
increase the quantity exchanged but result in no change in the
price.
increase the price but result in no change in the quantity
exchanged.
increase both the price and the quantity exchanged.

Solution
4.1(257 votes)

Answer

Increase the quantity exchanged but result in no change in the price. Explanation 1. Understand Perfectly Elastic Demand A perfectly elastic demand curve means that consumers will only buy at one price, and any change in supply does not affect the price. 2. Analyze Supply Increase Impact With perfectly elastic demand, an increase in supply leads to more quantity being exchanged at the same price.

Explanation

1. Understand Perfectly Elastic Demand<br /> A perfectly elastic demand curve means that consumers will only buy at one price, and any change in supply does not affect the price.<br /><br />2. Analyze Supply Increase Impact<br /> With perfectly elastic demand, an increase in supply leads to more quantity being exchanged at the same price.
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