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The price of coffee rose sharply last month, while the quantity sold remained the same. Five of the Big Bang Theory friends suggested various explanations.
Use the following table to identify who of the friends correctly explained the changes in the price and quantity of coffee.
Explanation
Correct?
Howard: Supply decreased, but demand was unit elastic.
Penny: Demand increased, but supply decreased at the same time.
Raj: Supply decreased, but demand was perfectly inelastic.
Sheldon: Demand increased, but it was perfectly inelastic.
Leonard: Demand increased, but supply was perfectly inelastic.
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