If the demand of a product with perfectly elastic supply increases, there will be
An increase in price and quantity offered
An increase in quantity offered but price will remain the same
A reduction in price and quantity offered
An increase in price but a reduction in quantity offered for sale
An increase in quantity offered but a reduction in price
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Discussions (12)
Ans is B. Supplier tends to increase his supply when their is large demand of goods(mostly commodity goods e.g film ticket) at an avoidable market price.when the price is high,the demand decrease and that equality brings about a shortage to the supplier. E.g if the demand for film ticket increases,it leads to increase in supply at the same price.
not correct the correct should be D since increase in demand increase price and reduce qty ss
The ansa is b becos ,consumer refuse to demand for a particular commodity if its pricq rises.it equal to infinity it remain the same
d ansa is meant 2 be D bcos since dey already attain d perfect elasticity level all dey can do is 2 increase price nd decrease d quantity
dat ans suppose to be b.buh dey suppose to write decrease in quantity offered nd price remain d same
It has no answer, perfectly elastic supply occur wen a change in price has no effect watsoever on d quantity of goods supplied
