If changes in demand cause significant changes in equilibrium price, then supply must be quite inelastic.

Question

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If changes in demand (which can cause a shift in the demand curve) lead to significant changes in equilibrium price, it suggests that the supply is relatively inelastic - that is, the quantity supplied is not very responsive to changes in price. If supply were more elastic (i.e. quantity supplied changed significantly in response to price changes), then changes in demand may result in smaller changes to equilibrium price.

If Changes in Demand Cause Significant Changes in Equilibrium Price