question archive Which of the following is true for BOTH the own-price elasticity of demand and the elasticity of supply? a) If the demand curve or supply curve is vertical, we say that demand or supply is perfectly inelastic
Which of the following is true for BOTH the own-price elasticity of demand and the elasticity of supply? a) If the demand curve or supply curve is vertical, we say that demand or supply is perfectly inelastic
Subject:EconomicsPrice:2.88 Bought3
Which of the following is true for BOTH the own-price elasticity of demand and the elasticity of supply?
a) If the demand curve or supply curve is vertical, we say that demand or supply is perfectly inelastic.
b) If the demand curve or supply curve is horizontal, we say that demand or supply is perfectly elastic.
c) Both demand and supply are likely to have a larger elasticity if there is more time for people to adjust to a change in price.
d) All of the above.
e) (a) and (c) only.
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The answer is d) All of the above
When the demand curve or the supply curve is horizontal then it means the curve is perfectly elastic and parallel to the x-axis. When the demand curve or the supply curve is vertical then it means the curve is perfectly inelastic and parallel to the y-axis.
