If the demand for some good fluctuates,but supply is constant,then which of the following combinations would generally yield the greatest price fluctuations?
A)small demand fluctuations and elastic supply
B)large demand fluctuations and elastic supply
C)small demand fluctuations and inelastic supply
D)large demand fluctuations and inelastic supply
E)small demand fluctuations and a unit elastic supply

Question

Quizplus · Accepted Answer

When demand fluctuates greatly and the supply is inelastic, even a small change in demand can cause a significant change in price. This is because the fixed supply cannot quickly respond to changes in demand, leading to large price fluctuations.

If the Demand for Some Good Fluctuates,but Supply Is Constant,then