Answer:
The correct answer is a. the equilibrium quantity decreases, and the equilibrium price is unchanged.
Explanation:
A perfectly elastic demand is an extreme case in which quantity demanded falls to zero with any increase in price, and increases to infinity when price drops.
Now we have this relation clear, it is important to notice that the question is introducing a third variable, which is quantity supplied. When supply decreases, the price remains the same, since only at this price consumers buy the good. The only change that ocurred is related to the availability of the product in the market.
In a normal scenario, an elastic demand would respond to this decrease in supply, pushing the price up, since consumers are willing to pay more. But given that we assume that the demand is perfectly elastic, the price remains the same, otherwise demand would fall to zero.
A theodicy is an attempt to justify or defend God in the face of evil by answering the following problem, which in its most basic form involves these assumptions: God is all good and all powerful (and, therefore, all knowing). The universe/creation was made by God and/or exists in a contingent relationship to God.
Answer: the sun and the water cycle
Explanation:
The predicted profits – and the price paid by the government – are considerable if the government privatizes the company as a monopoly.
<h3>
What do you mean by privatization?</h3>
The process of moving a business or industry from the public to the private sector is known as privatization. The area of the economy that is controlled by the government is known as the public sector.
Impacts of shared ownership privatization on the enterprises: enhanced profitability; improved labour efficiency and productivity; increased output; and more access to capital
Thus, if the privatization is owned by enterprises it will have a moderate effect on the country.
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