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- Subject
- Marketeconomics-mcqs › market
- Published
- 31 May 2019
- Last updated
- 28 May 2026
When supply changes, under which demand condition will the price be affected more significantly than the quantity sold?
Multiple choice question for Market. Select an option, then review the explanation below.
Explanation
If demand is price inelastic, a change in supply tends to cause a larger change in price rather than in quantity. This is because consumers do not significantly reduce or increase quantity demanded when prices change, leading to greater price fluctuations.
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- 5.Why is a competitive equilibrium considered Pareto efficient?