Whenever supply increases, the resulting market price will always be lower except:
A) when demand is perfectly price elastic (when the demand curve is horizontal).
B) when demand is completely price inelastic (when the demand curve is vertical).
C) when supply is perfectly price inelastic (when the supply curve is vertical).
D) in the case of demand having unit price elasticity throughout.

Question

Quizplus · Accepted Answer

The Answer of Whenever supply increases, the resulting market price will always be lower except:
A) when demand is perfectly price elastic (when the demand curve is horizontal).
B) when demand is completely price inelastic (when the demand curve is vertical).
C) when supply is perfectly price inelastic (when the supply curve is vertical).
D) in the case of demand having unit price elasticity throughout.

Whenever Supply Increases, the Resulting Market Price Will Always Be