Suppose the demand curve for hybrid cars shifts to the right.This will cause a relatively small increase in the price of hybrid cars if
A)demand is elastic and supply is inelastic.
B)demand is inelastic and supply is perfectly inelastic.
C)both demand and supply are inelastic.
D)both demand and supply are elastic.

Question

Quizplus · Accepted Answer

When both demand and supply are elastic, a shift in the demand curve results in a relatively small change in price because both consumers and producers can easily adjust to changes in the market.

Suppose the Demand Curve for Hybrid Cars Shifts to the Right.This