Exhibit 39-6

-Refer to Exhibit 39-6.A major change in weather conditions favorable to the production of X will shift the supply curve for X from its original position.The consequent change in price and total revenue would be less sharp if the demand curve for X is __________ because it is __________ over the relevant region.
A) D1; more elastic than D2
B) D1; more inelastic than D2
C) D2; more elastic than D1
D) D2; more inelastic than D1

Question

Exhibit 39-6
 
-Refer to Exhibit 39-6.A major change in weather conditions favorable to the production of X will shift the supply curve for X from its original position.The consequent change in price and total revenue would be less sharp if the demand curve for X is __________ because it is __________ over the relevant region.
A) D1; more elastic than D2 
B) D1; more inelastic than D2 
C) D2; more elastic than D1 
D) D2; more inelastic than D1

Quizplus · Accepted Answer

If the demand curve is more elastic, a shift in the supply curve will result in a smaller change in price and total revenue.

Exhibit 39-6 -Refer to Exhibit 39-6.A Major Change in Weather Conditions Favorable