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Question
The city of Huntsville is known for its wide variety of ice cream shops. What will happen if Nicolas Ice Cream Castle raises the price of its shakes?
a. Demand will decrease by a greater proportion than the price.
b. Demand will increase by a greater proportion than the price.
c. The quantity demanded will decrease by a greater proportion than the price.
d. The quantity demanded will increase by a greater proportion than the price.
e. Demand will not change.
Answer
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Related questions
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The economic entity most likely to engage in price gouging is
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What is the long-run consequence of a price ceiling law?
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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Q:
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