For a given decrease in supply, the condition of demand that will result in the most significant change in quantity is when demand is
A)elastic.
B)inelastic.
C)perfectly elastic.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

When demand is perfectly elastic, any decrease in supply will result in the most significant change in quantity, as consumers are extremely sensitive to price changes and will adjust their quantity demanded drastically in response to any price change.

For a Given Decrease in Supply, the Condition of Demand