If the demand curve for a good is horizontal and the price is positive,then a leftward shift of the supply curve results in
A) a price of zero.
B) an increase in price.
C) a decrease in price.
D) no change in price.

Question

Quizplus · Accepted Answer

A horizontal demand curve indicates perfectly elastic demand, meaning any change in price would result in zero quantity demanded. Therefore, a leftward shift in the supply curve will not change the price; it will only affect the quantity supplied.

If the Demand Curve for a Good Is Horizontal and the Price