For a given shift in demand, the more elastic is supply, the
A)smaller is the change in price.
B)smaller is the shift in demand.
C)smaller is the change in equilibrium quantity.
D)greater is the change in price.
E)greater is the shift in demand.

Question

Quizplus · Accepted Answer

When supply is more elastic, it means that producers have more flexibility in changing their output in response to changes in demand. Therefore, if the demand shifts, producers can adjust their output more easily, resulting in a smaller change in price.

For a Given Shift in Demand, the More Elastic Is