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kifflom [539]
3 years ago
9

Point X on the production possibilities curve

Social Studies
1 answer:
Phantasy [73]3 years ago
7 0
I would say C, cause C is under the line but i could be wrong..
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The correct answer is a. the equilibrium quantity decreases, and the equilibrium price is unchanged.

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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.

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