Question

Scientific evidence suggests that consumption of foods rich in fiber lowers cholesterol. As a result, the demand for bran increases at every price by 5,000 bushels and the supply curve for bran is perfectly price elastic. The quantity of bran consumed will:

Answer 1

The quantity of bran consumed will rise by exactly 5,000 bushels .

Explanation:

A small cost increase in ideally Elastic demand leads to a reduction in demand to zero, while a small price decline allows demand to grow to infinity. The demand is in this case completely elastic.

Elastic demand is the same when the energy storage is higher and the price increases proportionately less. Inelastic production is the other where demand changes are comparatively less and the price changes are more pronounced.

The sum of demand elasticity helps define a request curve's shape and pitch. The slope of the demand curve may, therefore, evaluate the elasticity of demand.