When demand is perfectly elastic and supply curve shifts right,

a. the price remains same and

b. quantity decreases.

Partially correct

The correct answer is Option 3: Partially correct

• Perfectly elastic demand means the demand curve is a horizontal line, indicating that the price remains constant regardless of changes in supply.
• When the supply curve shifts right (increase in supply), the quantity increases, not decreases.
• Statement (a) is correct: The price remains the same.
• Statement (b) is incorrect: The quantity decreases (this is wrong, it should increase).