When the demand curve shifts,the ____ elastic the supply curve at the initial equilibrium price,the _____ the change in equilibrium price and the ______ the change in equilibrium quantity.
A) More; larger; smaller
B) Less; larger; smaller
C) More; larger; larger
D) Less; smaller; larger

Question

Quizplus · Accepted Answer

When the supply curve is less elastic, a shift in the demand curve results in a larger change in equilibrium price and a smaller change in equilibrium quantity. This is because a less elastic supply curve is steeper, meaning that quantity supplied does not change much with price changes, leading to larger price adjustments.

When the Demand Curve Shifts,the ____ Elastic the Supply Curve