Assume the graph shown represents the market for bottles of wine and was originally in equilibrium with D and S. Something changes and demand shifts to D2. Which of the following is true?





A. Equilibrium price increased by $5.

B. Equilibrium quantity increased by 20.

C. Equilibrium price increased by $15.

D. Equilibrium quantity increased by 30.

AACSB: Analytical Thinking


A. Equilibrium price increased by $5.

Economics

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If the elasticity of demand for the latest American Idol album is 1.4, this means

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Economics