2007-02-23 15:36:29 · 7 answers · asked by Anonymous in Social Science ➔ Economics
Price falls more than proportionately to the fall in demand.
Hope that helps ,thats what i could remember ...
2007-02-23 19:19:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A perfectly elastic supply curve is perfectly flat. A shift of demand left will cause a decrease in quantity demanded at the given price, but the price will not change.
Now a highly elastic supply curve is not perfectly flat, but will be quite flat. A shift of demand to the left will cause a very slight decrease in price, and the quantity demanded will decrease--but not as much as with a perfectly elastic supply curve because the decrease in price slightly offsets the lowered demand in comparison.
2007-02-24 02:01:11 · answer #2 · answered by Jamie 3 · 0⤊ 0⤋
SUPPLY is elastic (highly sensitive to price change) and the quantity demanded DECREASES. this has no effect on the price. The price has to have an elasticity factor.
2007-02-24 00:15:43 · answer #3 · answered by captainchopps 1 · 0⤊ 0⤋
Price will stay the same but output will decrease. Supply being elastic (highly elastic aka perfect elastic) would mean people can substitute that good for another
2007-02-23 23:45:56 · answer #4 · answered by sunsetconmartini 2 · 1⤊ 0⤋
If demand reclines the price will go down.
2007-02-23 23:44:55 · answer #5 · answered by ? 3 · 0⤊ 0⤋
price will stay same or decrease just bit, because supply curve is nearly flat.
2007-02-24 00:29:46 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It will go south (of trhe border, no doubt)-
2007-02-23 23:51:46 · answer #7 · answered by marlynembrindle 5 · 0⤊ 0⤋