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# Elasticity of Demand: Coffee

APMICR-EBIEIV

When the price of coffee beans increases from \$5 to \$6 a pound, the amount produced increases from 10,000 pounds to 20,000 pounds.

This indicates that

A

the demand for coffee is elastic.

B

the demand for coffee is inelastic.

C

the supply of coffee is elastic.

D

the supply of coffee is inelastic.

E

the supply of coffee is unit elastic.