Wednesday, November 2, 2011

As a student in Managerial Economics cl which of the two items was affected and why?

I don't think this gives enough information to give a definite answer. First I thought that inflation would have gone up, which would raise both prices. Also, there might be taxes on only one of the goods that increase the price. There could be a shortage of coffee, etc. I'm not sure this question has only one answer, so I would be as creative as possible, just show that you know the principles of economics in the answer and you will get full credit.

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