The supply of beachfront property is inelastic. The supply of new cars is elastic. Suppose demand for both goods falls by half (at each price, Qd falls by half). For which product will P change the most? For which product will Q change the most?
The supply of beachfront property is inelastic. The supply of new cars is elastic. Suppose demand for both goods falls by half (at each price, Qd falls by half). For which product will P change the most? For which product will Q change the most?
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 17SQ
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The supply of beachfront property is inelastic.
The supply of new cars is elastic.
Suppose
demand for both goods falls by half
(at each price, Qd falls by half).
For which product will P change the most?
For which product will Q change the most?
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