Question

What happens in the case of a product that has elastic supply when the price decreases?

a. new firms enter the market as older one drop out.
b. some producers produce less, and others drop out of the market.
c. existing producers expand, and new producers enter the market.
d. existing firms continue their usual output but earn less

Answer 1

Hello there.

What happens in the case of a product that has elastic supply when the price decreases?

c. existing producers expand, and new producers enter the market.

Answer 2

Some producer produce less and others drop out the market