If the demand curve for a good increases and decreases cyclically along a relatively Inelastic (or steep) supply curve, then, in this market, the size of price fluctuations will be __________ than the size of quantity fluctuations.

Question

Quizplus · Accepted Answer

When the demand curve for a good increases and decreases cyclically along a relatively inelastic supply curve, even a small change in demand can cause a relatively large change in price. As a result, the size of price fluctuations will be relatively greater than the size of quantity fluctuations. Therefore, the correct answer is C) relatively greater.

If the Demand Curve for a Good Increases and Decreases