Question

Assume the supply curve shifts to the right by a given amount at each price. The price in the market will decline the most if demand is more price-_____ and supply is more price-_____. elastic; elastic inelastic; elastic elastic; inelastic inelastic; inelastic

Answer 1

Answer: c. price inelastic and supply is more price-inelastic.

Explanation:

Inelastic price describes the consumers static habit of purchasing irrespective of the rise or fall in price.

Supply inelastic : This is a sitiuation when percentage change in supply is less than a percentage change in price.