Question

For each of the following assume that the supply curve shifts while the demand curve remains...

For each of the following assume that the supply curve shifts while the demand curve remains constant. What is the direction of the supply shift and relative elasticity of demand?

1.) Price falls significantly. Quantity hardly changes at all.

Demand is ____

a.) perfectly elastic

b.)highly inelastic

c.)highly elastic

2.) Prices do not change. Quantity decreases significantly.

Demand is _________

a.) highly elastic

b.) perfectly elastic

c.) highly inelastic

Can anyone help?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1) Supply curve shifts rightward from AS to AS1 which cause price to fall significantly. If there is hardly change in quantity and supply curve shifted rightward, demand curve must be highly inelastic which means demand is near to vertical but not perfectly vertical.

Option B is correct.

2) Shift in supply curve leftward from AS to AS1 which does not change price but quantity decreased significantly. There must be perfectly elastic demand curve.

Option B is correct.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is perfectly elastic demand/supply? Draw a graph to represent perfectly elastic demand/supply. What is perfectly...
What is perfectly elastic demand/supply? Draw a graph to represent perfectly elastic demand/supply. What is perfectly inelastic demand/supply? Draw a graph to represent perfectly elastic demand/supply. When the price of t-shirts increases by 12 percent, the quantity of t-shirts demanded falls by 20 percent. Calculate the price elasticity of demand. Is the demand for t-shirts elastic, inelastic, or unit elastic? When the price of t-shirts falls by 30 percent, the quantity of t-shirts supplied decreases by 20 percent. Calculate the...
1. When there is a subsidy to consumers, * the demand curve will shift to the...
1. When there is a subsidy to consumers, * the demand curve will shift to the left the demand curve will shift to the right. the demand curve will shift, but the direction depends on relative elasticity. suppliers can expect to be taxed. 2. Which of the following is the great economic problem? * Differentiating shifts from movements Reducing the deficit in a multi-party system Minimizing unemployment in a changing world Satisfying unlimited wants with limited resources 3. On average,...
24. When demand is infinitely elastic (ceteris paribus), and there is technological advance which shifts the...
24. When demand is infinitely elastic (ceteris paribus), and there is technological advance which shifts the supply curve, we should expect that in this market a. none of the other answers are correct. b. equilibrium quantity declines. c. the supply curve moves leftward. d. the new equilibrium price remains unchanged. 25. The burden of a sales tax will fall most heavily upon the consumers when a. demand has unitary elasticity. b. supply is more elastic. c. demand is more elastic....
1) Tax incidences are majorly affected by the elasticity of demand and elasticity of supply. Using...
1) Tax incidences are majorly affected by the elasticity of demand and elasticity of supply. Using the partial equilibrium illustrate the tax incidence of a unit tax when Demand curve and supply curve are fairly elastic When demand curve is perfectly elastic and supply curve is fairly elastic When supply curve is perfectly inelastic and demand curve is fairly elastic 2) Discuss any four factors that affect the shift of tax burden
Assume that bad weather shifts the supply curve for pineapples along the demand curve to the...
Assume that bad weather shifts the supply curve for pineapples along the demand curve to the left which increases the pineapple price to $2.53/pineapple. If the original equilibrium price of pineapples is $1.15/lb and the original equilibrium quantity is 1,455,300 pineapples, the elasticity of pineapple supply is 0.85 and the elasticity of demand is -0.15, what is the new equilibrium quantity demanded of pineapples? What is the new equilibrium quantity supplied?
Assume that advertising shifts the demand curve for jeans to the right along the supply curve...
Assume that advertising shifts the demand curve for jeans to the right along the supply curve which pushes the jean price up by 125%. If the old equilibrium price of jeans is $8.76/pair and the old equilibrium quantity is 230 million pair, the elasticity of jean supply is 0.60 and the elasticity of demand is -0.766, what is the new equilibrium quantity demanded of jeans? What is the new equilibrium quantity supplied?
(60)A perfectly inelastic demand curve has an elasticity coefficient of: (a)1 (b)0.25 (c)∞ (d)None of the...
(60)A perfectly inelastic demand curve has an elasticity coefficient of: (a)1 (b)0.25 (c)∞ (d)None of the above Akal mn wahed Extra Credit Questions-Optional (61)If the percentage change in the quantity supplied of a good is less than the percentage change in price, price elasticity of supply is: (a)Inelastic (b)Perfectly inelastic (c)Elastic (d)Unitary elastic (62)If the percentage change in the quantity demanded of a good is equal to the percentage change in price, price elasticity of demand is: (a)Inelastic (b)Perfectly inelastic...
A technological breakthrough shifts the supply curve to the right. What happens to the price of...
A technological breakthrough shifts the supply curve to the right. What happens to the price of the product to consumers when the price elasticity of demand is inelastic and elastic? Draw the graphs to represent both conditions. In which condition do consumers save more?
When the expected future price of a good falls, the supply curve shifts to the right...
When the expected future price of a good falls, the supply curve shifts to the right and the demand curve shifts to the left simultaneously. What happens to the equilibrium price after the shifts? What happens to the equilibrium quantity after the shifts? Is it always possible to determine the direction of change in both the equilibrium price and quantity or is more information necessary? Use supply and demand curves to graphically illustrate your answer 7.0.3
1. When there is a subsidy to consumers, * the demand curve will shift to the...
1. When there is a subsidy to consumers, * the demand curve will shift to the left the demand curve will shift to the right. the demand curve will shift, but the direction depends on relative elasticity. suppliers can expect to be taxed. 2. Which of the following is the great economic problem? * Differentiating shifts from movements Reducing the deficit in a multi-party system Minimizing unemployment in a changing world Satisfying unlimited wants with limited resources 3. On average,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT