Homework Help Forum: Economics

Posted by Elliot on Saturday, October 31, 2009 at 6:02pm.

How does the quantity supplied of a good with a large elasticity of supply react to a price change?

• Economics - bobpursley, Saturday, October 31, 2009 at 6:06pm

  Isn't it amazing on the Walmart Shelf (things advertised on TV) are so cheap?

  
  

• Economics - Elliot, Saturday, October 31, 2009 at 6:11pm

  Err, I still don't understand?

  
  

• Economics - bobpursley, Saturday, October 31, 2009 at 6:18pm

  What I am saying, if it is easy to make (say a plastic wonder kitchen tool) that is made in great quantity, once demand drops, the price drops dramatically. The items are virtually worthless. Walmart sells them.

  
  

• Economics - Elliot, Saturday, October 31, 2009 at 6:23pm

  So the quantity supplied moves down the supply curve?

  
  

• Economics - bobpursley, Saturday, October 31, 2009 at 7:14pm

  yes.

  
  

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