If the price of a product falls by 25%, and the quantity supplied falls by 25%, we
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Question:
- If the price of a product falls by 25%, and the quantity supplied falls by 25%, we can say that the elasticity of supply is:
- inelastic.
- unitary elastic.
- elastic.
- perfectly elastic.
- perfectly inelastic
Other things being equal, the price elasticity of demand for a product will be lower:
A.if it is a large part of the consumer's budget.
B.in the long run as compared to the short run.
C.if there are many substitutes available.
D.if there are few or no substitutes available.
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