If a demand curve that intersects a perfectly inelastic supply curve shifts rightward, then____________

  • A only the quantity will increase
  • B The prices will remain constant
  • C the equilibrium price and quantity will increase
  • D only the price will increase

The correct answer is C. the equilibrium price and quantity will increase

If a demand curve that intersects a perfectly inelastic supply curve shifts rightward, then both the equilibrium price and quantity will increase. 

Previous question Next question