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devlian [24]
3 years ago
5

Suppose the demand curve for a product is represented by a typical downward-sloping curve. Now suppose that the demand for this

product increases. Which of the following statements accurately predicts the resulting increase in price?
A. The more elastic the supply curve, the greater the price increase.
B. The more elastic the supply curve, the smaller the price increase.
C. The increase in price is not affected by the elasticity of the supply curve.
D. There will be no increase in price if the supply curve is perfectly inelastic
Business
1 answer:
Dimas [21]3 years ago
8 0

Answer:

B. The more elastic the supply curve, the smaller the price increase.

Explanation:

If the demand for the product increases, demand would exceed supply and a scarcity would occur. The scarcity would lead to a rise in price and fall in quantity.

The severity of the scarcity depends on how fast supply is to respond to the scarcity. If supply can easily respond to the increase in price by increasing supply, the smaller the price increase would be.

Supply is elastic if a small change in price leads to a greater change in the quantity supplied.

I hope my answer helps you

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2 years ago
_____ is the degree to which a job requires completion of a whole or identifiable piece of work, such as assembling an entire br
ahrayia [7]

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Explanation:

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4 years ago
A cowboy enters town on friday. he stays for three days and leaves on friday. how did he do it?
Art [367]
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5 0
3 years ago
The International Trade Administration provides Multiple Choice
Alja [10]

International Trade Administration provides <u>a means to help US business compete in the global marketplace.</u>

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Natasha_Volkova [10]

Answer:

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