Waterfront homes have an inelastic supply and electric scooters have an elastic supply. Suppose that a rise in population doubles the demand for both products.
a) The price of waterfront homes will increase more than the price of electric scooters.
b) The price of electric scooters will increase more than the price of waterfront homes.
c) Both prices will increase, but the increase in the price of electric scooters will be larger.
d) Both prices will increase, but the increase in the price of waterfront homes will be larger.
