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Jane Has Noticed That She Used to Pay $2 for Coffee

Question 46

Multiple Choice

Jane has noticed that she used to pay $2 for coffee and now she pays $2.50. Which of the following statements is TRUE?


A) The relative price of coffee has increased compared to tea.
B) The money price of coffee has increased.
C) The law of supply explains why the price of coffee has increased.
D) Jane will stop consuming coffee.

Correct Answer:

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