Equilibrium price never changes in a situation of perfectly elastic supply, no matter what the demand is. Is it true?

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Solution

Yes, it is true. Equilibrium price will remain unchanged when supply is perfectly elastic whether demand increases or decreases. See fig. Here, price remains constant at OP when demand increases to $D_{1}$ and also remains constant at OP when demand decreases to $D_{2}$ .

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Equilibrium price never changes in a situation of perfectly elastic supply, no matter what the demand is. Is it true?

Yes, it is true. Equilibrium price will remain unchanged when supply is perfectly elastic whether demand increases or decreases. See fig. Here, price remains constant at OP when demand increases to D1 and also remains constant at OP when demand decreases to D2.

Yes, it is true. Equilibrium price will remain unchanged when supply is perfectly elastic whether demand increases or decreases. See fig. Here, price remains constant at OP when demand increases to $D_{1}$ and also remains constant at OP when demand decreases to $D_{2}$ .