If the supply curve for Pizza is perfectly elastic, then a reduction in demand will cause: Question 4 options:           the equilibrium price to stay the same and the equilibrium quantity to fall the equilibrium price to rise and the equilibrium quantity to stay the same the equilibrium price to fall and the equilibrium quantity to fall the equilibrium price to rise and the equilibrium quantity to fall.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
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Question 4 

 

If the supply curve for Pizza is perfectly elastic, then a reduction in demand will cause:

Question 4 options:

 

 

 
 
 

the equilibrium price to stay the same and the equilibrium quantity to fall

the equilibrium price to rise and the equilibrium quantity to stay the same

the equilibrium price to fall and the equilibrium quantity to fall

the equilibrium price to rise and the equilibrium quantity to fall.

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