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If the demand of a product with perfectly elastic supply increases, there will be

If the demand of a product with perfectly elastic supply increases, there will be
  • A. An increase in price and quantity offered
  • B. An increase in quantity offered but price will remain the same
  • C. A reduction in price and quantity offered
  • D. An increase in price but a reduction in quantity offered for sale
  • E. An increase in quantity offered but a reduction in price
Correct Answer: Option B
Explanation
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Contributions (8)

Abdulwsiu1
3 years ago
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.
emma84
5 years ago
not correct the correct should be D since increase in demand increase price and reduce qty ss
Amoo mercy
4 years ago
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
lady pee
4 years ago
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
ladi oladipo
3 years ago
ans is B bcos in perfectly elastic supply,supply doesn't change wit price
dat ans suppose to be b.buh dey suppose to write decrease in quantity offered nd price remain d same
darkypearl
3 years ago
It has no answer, perfectly elastic supply occur wen a change in price has no effect watsoever on d quantity of goods supplied

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