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If the Demand Curve Is Perfectly Elastic, What Will an Increase

Question 3

Multiple Choice

If the demand curve is perfectly elastic, what will an increase in supply result in?


A) an increase in the price, but no change in the quantity exchanged
B) an increase in the quantity exchanged, but no change in the price
C) a decrease in the price, but no change in the quantity exchanged
D) an increase in both the price and the quantity exchanged

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