An increase in demand for a good will lead to a larger increase in price if the supply is relatively elastic.
举一反三
- Which of the following always raises the equilibrium price? A: an increase in both demand and supply B: a decrease in both demand and supply C: an increase in demand combined with a decrease in supply D: a decrease in demand combined with an increase in supply
- An increase in price causes an increase in total revenue when: () A: demand<br/>is elastic. B: demand<br/>is inelastic. C: demand<br/>is unit elastic. D: All<br/>of the above are possible.
- If there are very few, if any, good substitutes for good A, then (). A: supply of good A would tend to be price elastic. B: demand for good A would tend to be price inelastic. C: demand for good A would tend to be price elastic. D: demand for good A would tend to be income elastic.
- Which of the following would cause price to decrease? A: a decrease in supply B: an increase in demand C: a surplus of the good D: a shortage of the good
- Generally, price and demand is ____ related which means that the increase in the price would lead to the decrease in the demand for that product and vice versa.