A shift in demand is likely to have more effect on the equilibrium price than quantity if supply is price elastic.

Question

Quizplus · Accepted Answer

If supply is price elastic, it means suppliers can easily adjust their quantity supplied in response to price changes. Therefore, a shift in demand is likely to have a more significant effect on quantity than on price, because suppliers will adjust their production to accommodate the new level of demand.

A Shift in Demand Is Likely to Have More Effect