If the Demand for Good a Is More Elastic Than

question 135

Multiple Choice

If the demand for good A is more elastic than the demand for good B,a small decrease in supply in both markets will cause

• A)a much greater increase in price for good A than for good B
• B)a much greater increase in price for good B than for good A
• C)the price will increase by the same amount in both markets
• D)only the price of good B will increase
• E)only the price of good A will increase

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