In the following graph, QS1 and QS2 represent the supply curves and QD1 and QD2 represent the demand curves. Refer to the graph to answer the question:
Which of the following statements is true?
A) The supply curve QS1 is elastic and QS2 is inelastic.
B) As price increases along the supply curve QS1, output will increase more than
C) An increase in demand will lead to a relatively larger change in output along QS2.
D) A decrease in demand from QD2 to QD1 leads to a rise in the equilibrium price.
Correct Answer:
Verified
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