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- Subject
- Marketeconomics-mcqs › market
- Published
- 31 May 2019
- Last updated
- 28 May 2026
When does a change in demand influence the price more significantly than the quantity supplied?
Multiple choice question for Market. Select an option, then review the explanation below.
Explanation
A change in demand impacts price more than quantity when the supply is relatively elastic but not perfectly elastic. Specifically, if the price elasticity of supply is +2, the price will adjust more in response to demand shifts compared to the quantity supplied.
More Market MCQs
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- 3.Which of the following factors can lead to market failure?
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- 5.Why is a competitive equilibrium considered Pareto efficient?