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

Question

Quizplus · Accepted Answer

When demand is perfectly elastic, even a small change in price leads to an infinite change in the quantity demanded, meaning any increase in supply would result in the most significant change in quantity compared to other demand conditions.

For a Given Increase in Supply, the Condition of Demand