When Does a Decrease in Supply Raise the Price More

question 89

Essay

When does a decrease in supply raise the price more: When demand is elastic or when demand is inelastic? When OPEC decreases the supply of oil, the price of gasoline skyrockets. Hence is the demand for gasoline elastic or inelastic?

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Definitions:

Helping

The act of providing assistance or support to others, often to alleviate their distress or meet their needs.

Belief in a Just World

The cognitive bias leading individuals to assume that people get what they deserve, thereby justifying suffering and success alike.

Justice System

A hierarchical system of courts and institutions designed to administer legal processes, uphold laws, and deliver justice to individuals and the community.

Strict Laws

Regulations that are rigorous in nature and are enforced with strict penalties for violations.