If the demand for a commodity is perfectly elastic, a downward shift in supply will result in lower prices.

Question

Quizplus · Accepted Answer

If the demand for a commodity is perfectly elastic, a downward shift in supply will not change the price, but will decrease the quantity sold. Demand being perfectly elastic means consumers are only willing to purchase at one price, and any attempt to increase the price results in zero sales.

If the Demand for a Commodity Is Perfectly Elastic, a Downward