1
answer
0
watching
427
views
3 Mar 2018
The equilibrium price of coffee mugs rose sharply last month, but the equilibrium quantity was the same as ever. Three people tried to explain this situation. Which explanations could be right? Explain your logic.
Billy: Demand increased, but supply was totally inelastic.
Marian: Supply increased, but so did demand.
Valerie: Supply decreased, but demand was totally inelastic.
The equilibrium price of coffee mugs rose sharply last month, but the equilibrium quantity was the same as ever. Three people tried to explain this situation. Which explanations could be right? Explain your logic.
Billy: Demand increased, but supply was totally inelastic.
Marian: Supply increased, but so did demand.
Valerie: Supply decreased, but demand was totally inelastic.
1
answer
0
watching
427
views
For unlimited access to Homework Help, a Homework+ subscription is required.
Read by 2 people
erinhare45Lv2
2 Jun 2021