As the price falls, the quantity demanded increases while the quantity supplied decreases. As the price falls, the quantity demanded increases while the quantity supplied increases. As the price falls, the quantity demanded decreases while the quantity supplied decreases. Suppose people buy less of good a when the price of good b rises. Suppose the elasticity of supply of floppy disks is 0.2.
Demand increases due to a rise in income.
Both C and D 10. Using demand and supply, illustrate the most likely explanation for these changes in the market for lumber. Explain your answer carefully and report the elasticity. Explain your answer. Suppose Mexico and the US can make either tomatoes or wheat.