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Which of the following statements is valid when the market demand curve is vertical? An increase...

Which of the following statements is valid when the market demand curve is vertical?

An increase in market supply will not decrease the equilibrium price.
Demand is perfectly elastic.
An increase in market supply will increase the equilibrium quantity.
An increase in market supply will not increase the equilibrium quantity.
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Answer #1

option 4

An increase in market supply will not increase the equilibrium quantity

A vertical demand curve is fixed at a particular quantity and that is perfectly inelastic demand curve.

An increase or decrease in supply will not change the quantity in the new equilibrium because the demand is fixed.

A perfectly elastic demand curve is horizontal which stick to a particular price. if a supply change in this case then the price is the same and quantity changes.

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