Suppose that the demand for olive oil is highly inelastic. Also suppose that the supply of olive

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Suppose that the demand for olive oil is highly inelastic. Also suppose that the supply of olive oil is fixed for the year. If the demand for olive oil suddenly increases because of a shortage of corn oil, you would expect a in the price of olive oil.

a. Large increase.

b. Small increase.

c. Large decrease.

d. Small decrease.

e. No change. 

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Microeconomics Principles, Problems and Policies

ISBN: 978-1259450242

20th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn

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