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No long explanation needed Consider a good with an elastic supply curve (like uber rides to the airport) and a good with an inelastic supply
No long explanation needed
- Consider a good with an elastic supply curve (like uber rides to the airport) and a good with an inelastic supply curve (like football tickets). All else equal (price, equilibrium quantity, demand curve, price ceiling are all the same), if a price ceiling is implemented, which good will have a smaller shortage?
- Good with inelastic supply
- Good with elastic supply
- They'll be the same
- Cannot determine
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