Assume that 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-_____.
A) elastic;elastic
B) inelastic;elastic
C) elastic;inelastic
D) inelastic;inelastic

Question

Quizplus · Accepted Answer

When demand is more price-inelastic, consumers are less responsive to price changes, so a rightward shift in supply leads to a larger decrease in price. If supply is also price-inelastic, producers are less responsive to price changes, amplifying the price decline.

Assume That the Supply Curve Shifts to the Right by a Given