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1. A demand or supply curve with ______________ would be horizontal in appearance.
a. unitary elasticity
b. zero elasticity
c. infinite elasticity
d. infinite cost elasticity
2. If the demand curve is perfectly elastic, then an increase in supply will:
a. increase both the price and the quantity exchanged.
b. increase the price but result in no change in the quantity exchanged.
c. increase the quantity exchanged but result in no change in the price.
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