Suppose the demand curve for hybrid cars shifts to the right.This will cause a relatively small increase in the price of hybrid cars if
A)demand is elastic and supply is inelastic.
B)demand is inelastic and supply is elastic.
C)both demand and supply are inelastic.
D)both demand and supply are elastic.

Question

Quizplus · Accepted Answer

When both demand and supply are elastic, the quantity can adjust more easily to changes in demand, resulting in a smaller increase in price.

Suppose the Demand Curve for Hybrid Cars Shifts to the Right.This