Author Question: If supply is elastic, the supply curve is relatively ________, and if demand is elastic, the demand ... (Read 199 times)

geoffrey · **on:** Jun 29, 2018

If supply is elastic, the supply curve is relatively ________, and if demand is elastic, the demand curve is relatively ________.

A) flat; flat
B) flat; steep
C) steep; flat
D) steep; steep

Question 2

Explain why there is an active market for cola-flavored soft drinks in the United States but there is not an active market for sauerkraut-flavored soft drinks.

What will be an ideal response?

kishoreddi · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

There is an active market for cola-flavored soft drinks because there are enough consumers who want these soft drinks and are willing to pay for them. Not enough consumers want sauerkraut-flavored soft drinks, and since they are not willing to pay for these soft drinks, there are no producers making them. This is the principle of consumer sovereignty.