Under Which of the Following Conditions Will an Increase in Demand

question 54

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.