The equilibrium price of coffee mugs rose sharply last, Ask an Expert

Economics

The equilibrium price of coffee mugs rose sharply last month, but the equilibrium quantity was the same as ever. Three people tried to describe the situation. Which explanations could be right? describe your logic.

BILLY: Demand increases, but supply was totally inelastic.
MARIAN: Supply increased, but so did demand.
VALERIE: Supply decreased, but demand was totally inelastic.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M965673

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