For a given increase in supply, the condition of demand that will result in the most significant change in price is when demand is
A)elastic.
B)inelastic.
C)perfectly elastic.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

When demand is perfectly inelastic, consumers are willing to buy the same quantity regardless of the price. Therefore, an increase in supply, when demand is perfectly inelastic, would result in a significant change in price because consumers would not change their quantity demanded in response to the price change.

For a Given Increase in Supply, the Condition of Demand