If the demand curve is horizontal a rightward shift of the supply curve will lead to
A)an increase in quantity supplied.
B)an increase in price.
C)a decrease in quantity demanded.
D)a decrease in price.

Question

Quizplus · Accepted Answer

When the demand curve is horizontal, it indicates that the quantity demanded is fixed regardless of the price. Therefore, a rightward shift of the supply curve will only result in an increase in the quantity supplied, as suppliers are willing to supply more at each price. This increase in quantity supplied will not result in a change in price, as there is no change in the quantity demanded.

If the Demand Curve Is Horizontal a Rightward Shift of the Supply