a Q5.39 Homework. Answered Suppose that the demand for shoes is elastic, but the supply is inelastic. In the market for belts, the demand and the supply of belts are elastic. Assume that everything else is the same and that the increase in costs reduces quantities supplied in each case by the same amount at each price. In which market will a change in the costs of inputs have the greatest effect on the price? Select an answer and submit. For keyboard navigion, use the up/down arrow keys to select an answer. C Shoes Belts The changes would be the same as the change in costs are identical. O X Your answer
a Q5.39 Homework. Answered Suppose that the demand for shoes is elastic, but the supply is inelastic. In the market for belts, the demand and the supply of belts are elastic. Assume that everything else is the same and that the increase in costs reduces quantities supplied in each case by the same amount at each price. In which market will a change in the costs of inputs have the greatest effect on the price? Select an answer and submit. For keyboard navigion, use the up/down arrow keys to select an answer. C Shoes Belts The changes would be the same as the change in costs are identical. O X Your answer
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 11CQ
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Transcribed Image Text:Q5.39
Homework Answered
Suppose that the demand for shoes is elastic, but the supply is inelastic. In the market for belts, the demand
and the supply of belts are elastic. Assume that everything else is the same and that the increase in costs
reduces quantities supplied in each case by the same amount at each price. In which market will a change in
the costs of inputs have the greatest effect on the price?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
Shoes
Belts
The changes would be the same as the change in costs are identical.
X
Your answer
It does not make a difference. It is the elasticity of demand that influences the size of the change in
the price.
Ancuiered
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