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
Homework Answers
(a) The equilibrium price in each market will fall, and the equilibrium quantity in each market will increase.
(b) Pharmaceutical drugs will experience a larger change in price.
(c) Computers will experience a larger change in quantity.
(d) The total consumer spending falls in the case of pharmaceutical drugs with inelastic demand. The total consumer spending increases in the case of computers with elastic demand.
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pharmaceutical drugs have an inelastic demand and computers have an elastic demand
pharmaceutical drugs have an inelastic demand and computers have an elastic demand. suppose that technology advance...
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