For a given increase in supply, the condition of demand that will result in no 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 elastic, consumers are extremely sensitive to price changes, meaning any increase in supply (without a change in price) will be absorbed by an equivalent increase in quantity demanded, resulting in no change in price.

For a Given Increase in Supply, the Condition of Demand