The price of coffee rose sharply last month, while the quantity sold remained the same. Five people suggest various explanations: LEONARD: Demand increased, but supply was per- fectly inelastic. SHELDON: Demand increased, but it was perfectly inelastic. PENNY: Demand increased, but supply decreased at the same time. HOWARD: Supply decreased, but demand was unit elastic. RAJ: Supply decreased, but demand was per- fectly inelastic.

The price of coffee rose sharply last month, while the quantity sold remained the same. Five people suggest various explanations: LEONARD: Demand increased, but supply was per- fectly inelastic. SHELDON: Demand increased, but it was perfectly inelastic. PENNY: Demand increased, but supply decreased at the same time. HOWARD: Supply decreased, but demand was unit elastic. RAJ: Supply decreased, but demand was per- fectly inelastic.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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