For each of the following assume that the demand curve shifts while the supply curve remains constant. What is the direction of the demand shift and relative elasticity of supply?
a. Prices do not change. Quantity increases significantly.
Supply is (highly elastic,higly inelastic, perfectly elastic, perfectly inelastic) and demand shifts (in, out)?
b. Price falls significantly. Quantity hardly changes at all.
Supply is (highly elastic,higly inelastic, perfectly elastic, perfectly inelastic) and demand shifts (in, out)?
c. Prices do not change. Quantity decreases significantly.
Supply is (highly elastic,higly inelastic, perfectly elastic, perfectly inelastic) and demand shifts (in, out)?