Consider the Following Demand and Supply Schedules for Coffee
We can also rule out Options D and E. Arabica the premium coffee bean whose prices were steaming for most of 2021 is barely in rally mode nowMeanwhile robusta the lower-end coffee bean which actually outperformed arabica last year is down double-digits.
Since buyer price increased by 3 we know that neither supply nor demand is perfectly inelastic which rules out Options A and B.
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A lack of demand across Europe in the aftermath of the Russia. If demand were perfectly inelastic the buyer price would have increased by the amount of the taxif supply were perfectly inelastic the buyer price would not have increased at all. ALL YOUR PAPER NEEDS COVERED 247.
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