An increase in supply caused no change in the equilibrium quantity bought and sold.Thus,demand must be
A) perfectly inelastic.
B) horizontal.
C) elastic.
D) unit elastic.

Question

Quizplus · Accepted Answer

When supply increases but there's no change in the equilibrium quantity bought and sold, it means that the demand is completely unresponsive to price changes, which is characteristic of perfectly inelastic demand. This means that the quantity demanded will remain the same regardless of changes in price or supply.

An Increase in Supply Caused No Change in the Equilibrium