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91Ó°ÊÓ

If supply is elastic, will shifts in demand have a larger effect on equilibrium quantity or on price?

Short Answer

Expert verified

Demand will have a greater equilibrium.

Step by step solution

01

Definition

Demand curve:

The demand curve may be a graph that depicts the connection between the value of a commodity or service and also the quantity demanded overtime.

02

Explanation

In the situation of elastic demand, a change in quantity is more sensitive to a change in price than a change in price is to a change in quantity. When demand is elastic, a movement in the supply curve has a greater impact on quantity.

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