Question
The price of gasoline rose last week, while the quantity of gasoline sold did not increase. Five policymakers make the following statements regarding this event.
The price of gasoline rose last week, while the quantity of gasoline sold did not increase. Five policymakers make the following statements regarding this event. Use graphs to show how each policymaker viewed the event. Who do you think has the correct answer (it is possible that there are multiple correct answers)?
a. Anika: Demand increased, but supply was perfectly inelastic.
b. John: Demand increased and demand was perfectly inelastic.
c. Jenny: Demand increased, but supply decreased at the same time.
d. Julia: Supply decreased, but demand was unit elastic
e. Brody: Supply decreased, but demand was perfectly inelastic.
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