If supply is highly elastic and demand shifts to the left what will happen to the price?
Answer:
Price falls more than proportionately to the fall in demand.
Hope that helps ,thats what i could remember ...
If demand reclines the price will go down.
Price will stay the same but output will decrease. Supply being elastic (highly elastic aka perfect elastic) would mean people can substitute that good for another
It will go south (of trhe border, no doubt)-
SUPPLY is elastic (highly sensitive to price change) and the quantity demanded DECREASES. this has no effect on the price. The price has to have an elasticity factor.
price will stay same or decrease just bit, because supply curve is nearly flat.
A perfectly elastic supply curve is perfectly flat. A shift of demand left will cause a decrease in quantity demanded at the given price, but the price will not change.
Now a highly elastic supply curve is not perfectly flat, but will be quite flat. A shift of demand to the left will cause a very slight decrease in price, and the quantity demanded will decrease--but not as much as with a perfectly elastic supply curve because the decrease in price slightly offsets the lowered demand in comparison.
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