If supply is highly elastic and demand shifts to the left:
A) price will fall significantly; quantity hardly changes at all.
B) price will hardly change at all; quantity will fall significantly.
C) price will fall significantly as will quantity.
D) price and quantity will hardly change at all.

Question

Quizplus · Accepted Answer

When supply is highly elastic, suppliers can easily adjust the quantity they produce. If demand shifts to the left (decreases), the quantity will fall significantly, but the price will hardly change because suppliers can adjust their production to the new demand level without needing to change the price much.

If Supply Is Highly Elastic and Demand Shifts to the Left