2. Suppose that the Demand is a downward-sloping straight line. Does it mean that the (own) price elasticity of demand is constant? Or does the elasticity change as we move along the line? PLEASE, EXPLAIN 3. At a given equilibrium point the demand is inelastic and the supply is elastic. Then, a positive shock (a shift to the right) of the supply should result in a (relatively) large increase in the equilibrium price and a relatively small increase in the quantity. TRUE/FALSE/WHY I

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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2. Suppose that the Demand is a downward-sloping straight line. Does it
mean that the (own) price elasticity of demand is constant? Or does the
elasticity change as we move along the line? PLEASE, EXPLAIN
3. At a given equilibrium point the demand is inelastic and the supply is
elastic. Then, a positive shock (a shift to the right) of the supply should
result in a (relatively) large increase in the equilibrium price and a
relatively small increase in the quantity. TRUE/FALSE/WHY
I
Transcribed Image Text:2. Suppose that the Demand is a downward-sloping straight line. Does it mean that the (own) price elasticity of demand is constant? Or does the elasticity change as we move along the line? PLEASE, EXPLAIN 3. At a given equilibrium point the demand is inelastic and the supply is elastic. Then, a positive shock (a shift to the right) of the supply should result in a (relatively) large increase in the equilibrium price and a relatively small increase in the quantity. TRUE/FALSE/WHY I
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