What happens to the equilibrium price of a life saving medicine if the demand curve is perfectly inelastic?
If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to: rise and the equilibrium quantity to stay the same. A 10 percent decrease in the price of potato chips leads to a 30 percent increase in the quantity of soda demanded. It appears that:
What happens to the equilibrium price of aspirin if the supply curve is elastic?
If the supply curve for aspirin is perfectly elastic, then a reduction in demand will cause the equilibrium price to: stay the same and the equilibrium quantity to fall. If the supply curve for housing is perfectly inelastic, then a reduction in demand will cause the equilibrium price to:
Why is the price of game tickets increasing?
increasing the price of game tickets because demand is inelastic. The longer the time period considered, the more the elasticity of supply tends to: increase. A 10 percent increase in income leads to a 15% decrease in the quantity of macaroni and cheese demanded but no change in the price of macaroni and cheese.
What is the cross price elasticity of demand for iced tea?
cross-price elasticity of demand for iced tea is +2.