Asked by
Adoesha Nofire
on Nov 25, 2024
Verified
If changes in demand cause significant changes in equilibrium price, then supply must be relatively inelastic.
Equilibrium Price
The price in a competitive market at which the quantity demanded and the quantity supplied are equal, there is neither a shortage nor a surplus, and there is no tendency for price to rise or fall.
Relatively Inelastic
Describes a situation where the demand for a good or service changes by a smaller percentage than changes in its price, indicating consumers' less sensitive response to price changes.
Supply
The total amount of a product or service available for purchase at any given price or time.
- Acquire insight into the notion of price elasticity of demand and the techniques used for its determination.
- Understand the factors influencing the determination of price elasticity of supply and its impact on production adjustments.
Verified Answer
JD
Learning Objectives
- Acquire insight into the notion of price elasticity of demand and the techniques used for its determination.
- Understand the factors influencing the determination of price elasticity of supply and its impact on production adjustments.