WAEC Economics 2025 Objective — Question 18
Question 18 of 51 from the West African Examinations Council (WAEC) Economics 2025 Objective paper, with the correct answer and a full explanation.
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If the supply of a product with a perfectly elastic demand increases, there will be
- A. an increase in equilibrium price and quantity.
- B. a fall in equilibrium price and an increase in equilibrium quantity.
- C. a fall in equilibrium quantity while equilibrium price remains constant.
- D. an increase in equilibrium quantity while equilibrium price is fixed.Correct
Explanation
With a perfectly elastic (horizontal) demand curve, price stays fixed; an increase in supply only raises the equilibrium quantity.
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