Question

A. If demand is elastic, will a shift in supply have a larger effect on equilibrium quantity or on price?

B. If demand is inelastic, will a shift in supply have a larger effect on equilibrium price or on quantity?

C. If supply is elastic, will a shift in demand have a larger effect on equilibrium quantity or on price?

D. If supply is inelastic, will a shift in demand have a larger effect on equilibrium price or on quantity?

E. Would you usually expect elasticity of demand or supply to be higher in the short-run or in the long-run? Why?