Answer the following question briefly:
With the help of the diagram, show how the equilibrium price and quantity of a commodity are affected when:
Demand is perfectly elastic and supply decreases.

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Solution

When demand is perfectly elastic and supply decreases the equilibrium price remains unaffected but the equilibrium quantity level falls.

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Answer the following question briefly:With the help of the diagram, show how the equilibrium price and quantity of a commodity are affected when:Demand is perfectly elastic and supply decreases.

When demand is perfectly elastic and supply decreases the equilibrium price remains unaffected but the equilibrium quantity level falls.

Answer the following question briefly:
With the help of the diagram, show how the equilibrium price and quantity of a commodity are affected when:
Demand is perfectly elastic and supply decreases.