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Answer to Question #184212 in Microeconomics for Jawad Afzal
Question #184212
The demand cure of necessities is inelastic. The demand cure of Luxuries is elastic. For both goods, suppose producers produce more and supply becomes double
(at each price, Qs doubles).
1. For which product will P change the most?
2. For which product will Q change the most?
(at each price, Qs doubles).
1. For which product will P change the most?
2. For which product will Q change the most?
Expert's answer
1. For which product will P change the most?
demand cure of necessities
2. For which product will Q change the most?
demand cure of Luxuries
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