question archive Choose the correct answer and explain your answer
Choose the correct answer and explain your answer
Subject:EconomicsPrice:2.88 Bought3
Choose the correct answer and explain your answer. A shift in demand would not affect the price when supply is
a. perfectly elastic
b. of zero elasticity
c. less than one but greater than zero
d. perfectly inelastic
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- A shift in demand would not affect the price when supply is a. perfectly elastic .
When the supply curve is perfectly elastic, that means that it is completely horizontal. Hence, shifts in the demand curve do not have any effect on the price. Only the quantity will be affected when the demand curve shifts.
