uppose the demand of a product decreases. What will be the effect on the market equilibrium price and quantity if supply is perfectly inelastic? If supply is perfectly inelastic, then A. the equilibrium price will decrease and the equilibrium quantity will decrease. B. the equilibrium price will decrease and the equilibrium quantity will not change. C. the equilibrium price will not change and the equilibrium quantity will not change. D. the equilibrium price will increase and the equilibrium quantity will increase.
Suppose the demand of a product decreases. What will be the effect on the
A. the equilibrium price will decrease and the equilibrium quantity will decrease.
B. the equilibrium price will decrease and the equilibrium quantity will not change.
C. the equilibrium price will not change and the equilibrium quantity will not change.
D. the equilibrium price will increase and the equilibrium quantity will increase.
The fundamental ideas of economics, supply and demand, explain how the costs and amounts of goods and services are decided in a market economy. According to the law of demand, demand will drop when a good or service's price rises and vice versa. This indicates that the relationship between price and quantity demanded is inverse.
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