Question: A decrease in supply will cause the greatest change in prices if demand is ______________. a inelastic b elastic c unitarily elastic d none is

A decrease in supply will cause the greatest change in prices if demand is ______________.

a

inelastic

b

elastic

c

unitarily elastic

d

none is true, because the elasticity of demand does not change the effects of a change in supply.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

In economics, elasticity refers to the responsiveness of one variable to changes in income only the same variable another variable price only If the percentage change in quantity demanded divided by...

Q:

Can you please solve these questions based on the reading I have attached. Thanks so much! :) 208 MARKETS. SUPPLY AND DEMAND 10.0 CHAPTER 10 LEARNING GOALS After reading this chapter you should be...

Q:

File Tools View econ . Saved to this PC v X Question 1 (1 point) Because the perfectly competitive firm is a price-taker, its demand curve is downward-sloping Price MC b MRS horizontal ATC AVC - MR....

Q:

Question 1 (1 point) At a product price of "0h", this firm would maximize profit by producing at an output of a "0n" b "0p" c "0r" d "0s" e "0t" Question 2 (1 point) Because the perfectly competitive...

Q:

Question 1 (1 point) At a product price of "0h", this firm would maximize profit by producing at an output of a "0n" b "0p" c "0r" d "0s" e "0t" Question 2 (1 point) Because the perfectly competitive...

Q:

If digital cameras and memory cards are complements for Consumers, then it is likely that: O their cross price elasticities are greater than zero. O their price elasticities of demand are less than...

Q:

I need your help to answer these MCQs Pls. 11. The TVC of producing 2 units of output is $16. The TVC of producing 3 units of output is $20. The TVC of producing 4 units of output is $25. The MC of...

Q:

1) Most alcoholic beverage products have a unit elasticity Response options group False True 2) A cross elasticity of positive demand indicates that goods X and Y are complementary goods. Response...

Q:

Identity the choice that best completes the statement or answers the question. Economics is defined as the study of: a. central planning b. Business c. how society manages its scarce resources d....

Q:

Choose the correct Answer 1, Economics is the study of How society manages its unlimited resources How to reduce our wants until we are satisfied How society manages its scarce resources How to fully...

Q:

Suppose Never Bank (not the central bank), operating in (fictitious country) Neverland holds $100 million in deposits. Also assume that banks in Neverland are supposed to maintain the (required)...

Q:

DKM Digitals Ltd is a retail business that sells 134 units of one particular brand of computers per week. The company purchases computers from Deggs Company and the purchase-order lead time is 4...

Q:

13.89 A 240120-V rms power transformer is rated at 10 kVA. Determine the turns ratio, the primary current, and the secondary current.

Q:

Last year, Jarod left a job that pays $80,000 to run his own bike-repair shop. Jarod's shop charges $65 for a repair, and last year the shop performed 5,000 repairs. Jarod's production costs for the...

Q:

TASCA Bhd is principally engaged as a total logistics solution provider commencement on 1 January 2016 and listed on the Main Market of Bursa Malaysia in the category of Trading/Services. The company...

Q:

On November 1 2017 the account balances of Hamm Equipment Repair were as follows No Debits No Credits 101 Cash 2430 154 Accumulated DepreciationEquipment 2180 112 Accounts Receivable 4230 201...

Q:

Robert purchases a standard HO-3 policy, with no special endorsements. Under Section II of the policy, he has a $100,000 Coverage E limit and a $1,000 Coverage F limit (per person), and all other...

Q:

1. In the lab, you will be analyzing the collisions of two pucks on an air table. The pucks are connected to an electric pulsing system that provides a brief electric pulse 60 times per second. Each...

Q:

Write a program to wish happy birthday to a student. Firstly, take today month and day as an input and secondly take birthday as an input in the form of month and day. If the input day and month...

Q:

2. What we can learn from the past

Q:

17. In a communication context (choose which one), put plus (+) for the areas you find easy to perform and minus (-) for the areas you find difficult to perform. a. to present something to a larger...

Q:

2. Develop a good and lasting relationship