If the Supply Curve Is Perfectly Elastic, What Effect Will

Multiple Choice

If the supply curve is perfectly elastic, what effect will an increase in demand have?

A) It will increase the quantity exchanged but result in no change in the price.
B) It will increase both the price and the quantity exchanged.
C) It will increase the price but result in no change in the quantity exchanged.
D) It will decrease the price but result in no change in the quantity exchanged.