Assume a typical PRODUCT market. Show graphically how the effects of an increase

Question

Assume a typical PRODUCT market. Show graphically how the effects of an

increase in supply will differ according to the elasticities of supply and demand.

a) Illustrate the following combinations:

i) An elastic supply and an elastic demand

ii) An inelastic supply and an inelastic demand

iii) An elastic supply and an inelastic demand

iv) An inelastic supply and an elastic demand

b) If you were a farmer (i.e. if the above market were for farm products) whichof the four combinations would you prefer and why?

Explanation / Answer

en.wikipedia.org/wiki/Price_elasticity_of_supply

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.