Which of the following is true of a good with a perfectly elastic supply?
A) Any increase in the price of the good will lead to a decrease in the seller's revenue.
B) Any increase in the price of the good will decrease the quantity supplied of the good by more than the price change.
C) Any increase in the price of the good will induce a firm to supply its maximum possible quantity of the good.
D) Any increase in the price of the good will increase the quantity supplied of the good exactly by an amount equal to the price change.
Correct Answer:
Verified
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