Inelastic Supply Curve and the Demand Curvfe
Not what you're looking for?
Using graph(s) compare the impact on price, quantity and total revenue when:
A) an elastic demand curve increases along a perfectly inelastic supply curve
B) an inelastic demand curve increases along a perfectly inelastic supply curve
NOTE: Assume the increase in demand in both cases are of the same size.
This is just a general tutorial question
Purchase this Solution
Solution Summary
This solution deals with what would happen to price and quantity given an inelastic supply curve. It contrasts the situation given an elastic demand curve and an inelastic demand curve.
Solution Preview
Inelastic means that there is no effect in quantity due to price. There are two slides attached to this answer (please see the first one where the two inital graphs are presented). In the first graph, the supply is perfectly inelastic but the demand is relatively elastic (normal). In the second one, a perfectly inelastic supply curve is matched with a relatively inelastic demand curve (note it didn't say perfectly inelastic-just inelastic - a perfectly inelastic ...
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.