The price of canned pumpkin increases from $1.00 to $1.50 (50% increase) at the start of November.
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Question:
The price of canned pumpkin increases from $1.00 to $1.50 (50% increase) at the start of November. The equilibrium quantity sold at a local market increases from 200 in October to 400 in November (100% increase).
This seems to be due to an increase (shift) in demand, but the supply curve has not changed. Then both of these points are on the supply curve.
Based on this data, it seems like the price elasticity of _______ is _______
A. Supply.2
B. Supply, 4.
C. Demand, -2
D. Demand, 4
Related Book For
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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