question archive A shift in demand would not affect the price when supply is: a) perfectly elastic
A shift in demand would not affect the price when supply is: a) perfectly elastic
Subject:EconomicsPrice:2.88 Bought3
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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The correct answer is a) perfectly elastic.
When supply is perfectly elastic, the supply is represented by a horizontal line passing through the price at which the product is being sold. The demand curve can intersect the supply curve at any point and the price will remain the same.
