Final answer:
If the demand curve is perfectly elastic, an increase in supply will result in an increase in the quantity exchanged but no change in the price.
Step-by-step explanation:
If the demand curve is perfectly elastic, then an increase in supply will result in an increase in the quantity exchanged but no change in the price. This is because when demand is perfectly elastic, consumers are highly responsive to changes in price, and the quantity demanded will increase significantly with a decrease in price.
For example, let's say the demand curve for a product is perfectly elastic and the supply of that product increases. The price of the product will remain the same, but the quantity exchanged will increase as consumers are willing to consume more at the same price.