If the market for bottled spring water is characterized by a very elastic supply curve and a very inelastic demand curve, an outward shift in the supply curve would be reflected primarily in the form of
a. higher prices.
b. higher output.
c. lower prices.
d. lower output.
Question 2
If the market for hula-hoops is characterized by a very inelastic supply curve and a very elastic demand curve, an inward shift in the supply curve would be reflected primarily in the form of
a. higher prices.
b. higher output.
c. lower prices.
d. lower output.
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