Suppose that instead of being highly inelastic, the demand for oil is highly elastic.
a. Given the situation illustrated by the first graph in the Making the Connection on page 203, would the resulting price change be larger, smaller, or the same as the actual price change shown in the graph? Briefly explain.
b. Given the situation illustrated by the second graph in the Making the Connection on page 204, would the resulting price change be larger, smaller, or the same as the actual price change shown in the graph? Briefly explain.