Homework Help: Mircoeconomics: Elasticity

Posted by Anonymous on Saturday, October 4, 2008 at 11:12am.

Please help! I have a mid-term test in a couple of minutes...

--------------
If the demand for some good fluctuates, but supply is constant, then which of the following combinations would generally yield the greatest quantity fluctuations?
A) large demand fluctuations and elastic supply
B) small demand fluctuations and unit elastic supply
C) small demand fluctuations and inelastic supply
D) large demand fluctuations and inelastic supply
E) small demand fluctuations and elastic supply

--------------
I don't understand why the correct answer is "a". Please explain to me what the question means and why "a" is the correct answer.

I thought the answer was "d" because I thought if supply was constant, it has to be an inelastic supply, but in this case, it is elastic supply????

No one has answered this question yet.

Answer this Question

Related Questions

Economics - How is elasticity of supply related to elasticity of demand? Is this...
Economic Theory - What is the price elasticity of supply for your chosen ...
Economics help - What is the short-run effect on the exchange rate of an ...
economics - suppose the demand curve for a product is given by Q=10-2P+Ps1,where...
demand & Supply - If the demand for butter rises by 4% while the price of ...
economics - Given the business situation of Mrs. Acres Homemade Pies (p. 30) and...
economics - Given the business situation of Mrs. Acres Homemade Pies (p. 30) and...
Economics - The Own price elasticity of demand for good X is -2, its income ...
economics - Please help. Can anyone give me a couple of examples of political ...
Economics- please check - Please check to see if my answers are correct. ...

For Further Reading

First Name:
School Subject:
Answer: