--%>

Perfectly elastic supply problem

When will a rise in demand entail an increase in the quantity demanded however no change in the price?

E

Expert

Verified

In case of perfectly elastic supply, the increase in demand causes no change in price however it will lead to a rise in quantity.

   Related Questions in Microeconomics

  • Q : Plans of savers and investors This

    This capital market is within a closed private economy. Primary plans of savers and investors are demonstrated as curves S0 and I0. There Market equilibrium will exist at: (1) point a. (2) point b. (3) point c. (4) point d. (5) point

  • Q : Demand of Substitute Goods I have a

    I have a problem in economics on Demand of Substitute Goods. Please help me in the following question. All as well equivalent, raised prices for a new Toyotas will most instantly rise the: (1) Price cuts essential for ‘lemons’ to be sold b

  • Q : Labor Contracts-Check-off Provisions

    I have a problem in economics on Labor Contracts-Check-off Provisions problem. Please help me in the given question. The statement of check-off provision: (1) Was outlawed through Taft Hartley Act. (2) Is unlawful in union shops. (3) Simplifies the un

  • Q : Unexpected growth of inventories Can

    Can someone help me in finding out the right answer from the given options. Whenever the quantity of a good supplied surpasses the quantity demanded: (i) Unexpected growth of inventories will cause prices to drop. (ii) The present market price is beneath equilibrium.

  • Q : Profit Maximization in Labor Markets

    Can someone help me in finding out the right answer from the given options. All the profit maximizing organizations employ labor up to the point where: (1) MR   MC is maximized. (2) VMP = MFC. (3) VMP = MRP. (4) MRP = MFC. (5) VMP = w.

  • Q : Marginal Revenue and Total Revenue If a

    If a monopolist which does not price discriminate has maximum total revenue as: (1) demand is perfectly price elastic. (2) marginal revenue is positive. (3) demand is relatively inelastic  (4) marginal revenue is

  • Q : Numerical problem on Relative Prices

    When the market price of a gallon of gas is similar as the cost of 4 pineapples in dollars, the relative price of the pineapple is: (i) 1/4 of a gallon of gas. (ii) 25 cents. (iii) 4 gallons of gas. (iv) $4.00. Can someone please h

  • Q : Ratio of perfect equality and Lorenz

    The ratio of the area between the perfect equality reference line and the Lorenz curve is the: (w) Gini index. (x) relative income (y) poverty line (z) marginal productivity standard.

    Q : What is fiscal deficit Fiscal deficit :

    Fiscal deficit: When the total government expenses are more than total government receipts exclusive of borrowing it is termed as fiscal deficit. Fiscal deficit = Total Government Expenditure – Tot

  • Q : Describe inferior goods in economics

    Inferior goods in economics: Inferior goods refer to such goods whose demand reduces with the rise in income of consumer.