Refer to Scenario 8.2. The more elastic is demand for yachts,

A) the more Q will fall and the more P will rise.
B) the less Q will fall and the more P will rise.
C) the more Q will fall and the less P will rise.
D) the less Q will fall and the less P will rise.
E) the closer is the new equilibrium point to the old.

Elastic Demand

Refers to a situation where the quantity demanded of a good or service changes drastically in response to changes in its price.

Industry Output

The total production of goods and services provided by an industry within a specific period.

Equilibrium Point

A state in which market supply and demand balance each other, resulting in stable prices.