Under Which of the Following Conditions Will an Increase in Demand

question 104

Multiple Choice

Under which of the following conditions will an increase in demand cause a relatively small increase in price?

• A)If the shift of the demand curve is relatively small, the gap between the new demand and the old supply will be relatively small.
• B)If there is highly elastic demand, consumers are very responsive to changes in price.
• C)If there is highly elastic supply, producers are very responsive to changes in price.
• D)all of the above

---

Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing to sell at a given price over a specific period.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a given price.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at different prices.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.