The change in the price of a foodstuff will be greater,
A)the smaller the change in the supply of the foodstuff.
B)the greater the change in the supply of the foodstuff and the more inelastic the demand curve for the foodstuff.
C)the lesser the change in the supply of the foodstuff and the more inelastic the demand curve for the foodstuff.
D)the greater the change in the supply of the foodstuff and the more elastic the demand curve for the foodstuff.
E)the lesser the change in the supply of the foodstuff and the more elastic the demand curve for the foodstuff.

Question

Quizplus · Accepted Answer

The price change will be greater when there is a significant change in supply and the demand is inelastic, as consumers are less responsive to price changes, leading to larger price fluctuations.

The Change in the Price of a Foodstuff Will Be