An increase in supply caused no change in the equilibrium price of a good.Thus,demand must be:
A)perfectly inelastic.
B)vertical.
C)perfectly elastic.
D)unitary elastic.

Question

Quizplus · Accepted Answer

If an increase in supply causes no change in the equilibrium price, it means that the demand for the good is so responsive to changes in price that any increase in supply is immediately met with a proportional increase in demand, keeping the price constant. This is only possible when demand is perfectly elastic.

An Increase in Supply Caused No Change in the Equilibrium