Document1 - Microsoft Word A A? Insert References Page Layout Mailings Review View 19 Find - . . A Cambria Headi11 . ' ' ARB 5.15. 21 B TV she x, X A. A..A Font Paragraph Normal No Spaci... Heading 1 Heading 2 Title Subtitle Subtle Em... Change Styles be Replace Select- Editing at Painter Styles 13 TV O- elasticity of su upply gives a price is comple.. Where the elasticity of supply is equal to the elasticity of demand the series ofreactions. works out as shown in the Figure 1. The quantity in the initial, period (Q.) is large, producing a relatively low price where it intersects the demand curve at P. This low price, intersecting the supply curve calls forth in the next period a relatively shortsupply Q. CM This short supply gives a high price, P, where it intersects the supply curve. This high price calls forth a corresponding increased productions in the third, with a correspondinglow price, P. Since this low price in the third period is identical with that in the first, the production and price in the fourth, fifth, and subsequent periods will continue to rotate around the path Q..P2, Q. P, etc. As long as price is completely determined by the current supply, and supply is completely determined by the preceding price, fluctuation in price and production will continue in this unchanging pattern indefinitely, without anequilibrium being approached or reached. This is true in this particular case because the demand curve is the exact reverse of the supply curve so that at their overlap each has the same elasticity. This case has been designated the case of continuous fluctuations." The passage is talking about? Words: 220 English india Type here to search 10096 O 31 * S 1 9 W AE (1) ENG 15:01 25-06-2021