Suppose the demand curve for UK basketball tickets is perfectly elastic but the

Question

Suppose the demand curve for UK basketball tickets is perfectly elastic but the supply curve for UK basketball tickets is not perfectly elastic or perfectly inelastic. If the equilibrium price of UK basketball tickets is initially $2, a downsizing of Rupp arena in the number of seats that causes a decrease in supply will:

have no effect on the equilibrium quantity.  

increase the equilibrium price.

increase the equilibrium.

have no effect on the equilibrium price.

decrease the equilibrium price.

Explanation / Answer

have no effect on equilibrium price

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