When firms are near their capacity of producing a good, they would not be able to increase their quantity supplied to the market much in response to an increase in the price of a good in the short run. Drivers ed final test answers. Since hot chocolate is a normal good and income falls, the demand curve for hot chocolate would shift inward, lowering the equilibrium price and equilibrium quantity of hot chocolate sold: b. Thus, we would expect the supply curve to be inelastic at current levels of production—they would not be able to increase their production much to take advantage of higher prices.

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