Question: The price of coffee rose sharply last month, while the quantity sold remained the same. Each of five people suggests an explanation: Tom: Demand increased,

The price of coffee rose sharply last month, while the quantity sold remained the same. Each of five people suggests an explanation:

Tom: Demand increased, but supply was perfectly inelastic.

Dick: Demand increased, but it was perfectly inelastic.

Harry: Demand increased, but supply decreased at the same time.

Larry: Supply decreased, but demand was unit elastic.

Mary: Supply decreased, but demand was perfectly inelastic.

Who could possibly be right?

a Tom, Dick and Harry b Tom, Dick and Mary c Tom, Harry and Mary d Dick, Harry and Larry

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