pharmaceutical drugs have an inelastic demand and computers have an elastic demand. suppose that technology advance...
pharmaceutical drugs have an inelastic demand and computers have an elastic demand. suppose that technology advance doubles the supply of both product (that is, the quantity supplied at each price is twice what it was)
what happens
1 to the equilibrium price and quantity ib each market?
2 which product experiences a larger change in price?
3 which product experiences a larger change in quantity?
Homework Answers
Solution: -
(1) Equilibrium price will decrease and equilibrium quantity will increase in both markets.
(2) Drug Market
(3) Computer market.
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pharmaceutical drugs have an inelastic demand and computers have
an elastic demand. suppose that technology advance...
pharmaceutical drugs have an inelastic demand and computers have an elastic demand
pharmaceutical drugs have inelastic demand and computers have an elastic demand. Suppose that technological advance doubles the supply of both products that is the quantity supplied at each price is twice what it was.What happens to the equilibrium price and quantity in each market
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