3 Questions
What happens to price and quantity when demand increases and supply decreases?
Price increases, quantity ambiguous
In a market with elastic demand and inelastic supply, what happens when the supply increases?
Price decreases, quantity increases
What is the likely outcome when both demand and supply increase by the same percentage?
Quantity increases, price ambiguous
Test your knowledge of supply and demand elasticity with these questions. Explore how price and quantity change in different scenarios, including when demand increases and supply decreases, and when supply increases in a market with elastic demand. See if you can predict the likely outcome when both demand and supply increase by the same percentage.
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