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Go back to the supply and demand graphical analysis. Now, assume that demand is relatively inelastic while the supply is a normal curve. For some
Go back to the supply and demand graphical analysis. Now, assume that demand is relatively inelastic while the supply is a normal curve. For some reason, the supply increases in this market, and nothing is happening on the demand side. There is an argument between analysts. One of them says the price drop will be substantial, while the other thinks it will be insignificant. According to your analysis, who is right? Explain.
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