If the supply curve is perfectly elastic, then an increase in demand will:
a. increase both the price and the quantity exchanged

b. increase the price but result in no change in the quantity exchanged.
c. increase the quantity exchanged but result in no change in the price.
d. decrease the price but not change the quantity exchanged.


c

Economics

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If the U.S. government enters the foreign exchange market and purchases dollars to maintain a specific exchange rate with the yen, the dollar will ________ and the yen will ________

A) depreciate; depreciate B) depreciate; appreciate C) appreciate; depreciate D) appreciate; appreciate

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If a firm is hiring in a perfectly competitive labor market, the firm's marginal labor cost (or marginal resource cost) curve slopes downward

a. True b. False

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What is true of both expansions and recessions?

a. There is a poorer than normal match between workers and their jobs. b. The labor market clears. c. The economy operates at its potential output. d. Cyclical unemployment is zero. e. None of the above.

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The dominant currencies in the international bond market are the euro and the U.S. dollar

a. true b. false

Economics