An increase in demand will increase the quantity sold but not the price in a market if:
A)supply is perfectly elastic
B)supply is perfectly inelastic
C)supply is relatively elastic
D)supply is relatively inelastic

Question

An increase in demand will increase the quantity sold but not the price in a market if:
A)​supply is perfectly elastic
B)​supply is perfectly inelastic
C)​supply is relatively elastic
D)​supply is relatively inelastic

Quizplus · Accepted Answer

When supply is perfectly elastic, it means that suppliers are willing to supply any quantity at a particular price. Therefore, if demand increases, the quantity sold will increase without a change in price.

An Increase in Demand Will Increase the Quantity Sold but Not