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Janiely Brito
on Oct 26, 2024

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Demand for vegetables at a small farmers' market is steady,but the supply of vegetables has decreased because of a drought.This is good news for farmers if demand is _____ and the _____ effect outweighs the _____ effect.

A) inelastic;price;quantity
B) elastic;price;quantity
C) inelastic;output;price
D) elastic;output;price

Demand Elastic

Refers to how sensitive the quantity demanded of a good is to a change in its price; high elasticity indicates consumers will significantly alter their demand in response to price changes.

Price Effect

The impact on the quantity demanded of a good or service resulting from a change in its price, holding all other factors constant.

Quantity Effect

The change in quantity demanded or supplied of a good or service due to a change in its price.

  • Evaluate the repercussions of price changes on total revenue with respect to the elasticity of demand.
  • Discern circumstances where the demand for a product or service is expected to be elastic or inelastic, reflecting on the product's or service's attributes.
  • Comprehend the impact of quantity and price changes on overall income.
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Raynoka BalkaranOct 31, 2024
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