Multiple Choice
The price elasticity of demand for coffee is 2.2 and the price elasticity of supply for coffee is 1.8.If demand increases by 20%,the percentage change in the equilibrium price of coffee will
A) rise by 5%.
B) fall by 5%.
C) rise by 0.2%.
D) fall by 0.2%.
Correct Answer:
Verified
Correct Answer:
Verified
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