Suppose the demand curve for a product is represented by a typical downward-sloping curve. Now suppose the demand for this product increases. Which of the following statements accurately predicts the resulting increase in price?
A) The more elastic the supply curve, the greater the price increase.
B) The increase in price is not affected by the elasticity of the supply curve.
C) The more elastic the supply curve, the smaller the price increase.
D) There will be no increase in price if the supply curve is perfectly inelastic.
C
Economics
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Which of the following is a feature of a contestable market?
A. There is a single firm in the market serving many consumers. B. There is a single firm in the market serving many consumers and the market price is equal to marginal cost. C. The market price is equal to marginal cost. D. There are several firms in the market serving many consumers.
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