3. If the question is whether a shift in demand will have a greater effect on equilibrium price or quantity, the answer lies not with the elasticity of demand, but with the elasticity of supply. Why is this? Explain fully. You may provide a graph(s) as part of your explanation. (6 pts.)

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When determining whether a shift in demand will have a greater effect on equilibrium price or quantity the elasticity of supply plays a crucial role b... View the full answer