Multiple Choice
If a given reduction in market demand causes the market equilibrium price to decrease by a very large percentage while equilibrium quantity purchased decreases by a very small percentage,
A) market supply is inelastic (but not perfectly inelastic.)
B) market supply is elastic (but not perfectly elastic.)
C) market supply is perfectly inelastic.
D) market supply is perfectly elastic.
Correct Answer:
Verified
Correct Answer:
Verified
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