If market demand is inelastic and supply is subject to severe shifts from season to season,it follows that
A)price changes are likely to be small.
B)price changes are likely to be large.
C)total revenue is likely to be constant over time.
D)total revenue is likely to be highly volatile.
E)b and d

Question

Quizplus · Accepted Answer

When demand is inelastic, quantity demanded doesn't change much with price changes. If supply shifts significantly, prices will fluctuate greatly to balance supply and demand, leading to large price changes and volatile total revenue.

If Market Demand Is Inelastic and Supply Is Subject to Severe