An increase in demand will increase equilibrium price to a greater extent
A)if the product is a normal good.
B)if the product is an inferior good.
C)the less elastic the supply curve.
D)the more elastic the supply curve.

Question

Quizplus · Accepted Answer

The less elastic the supply curve, the harder it is for producers to increase production in response to an increase in demand, leading to a greater increase in equilibrium price. Elasticity of supply affects how much the price changes in response to changes in demand.

An Increase in Demand Will Increase Equilibrium Price to a Greater