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If the Price of Milk Increased by 5 Per Cent

Question 98

Multiple Choice

If the price of milk increased by 5 per cent because of an increase in the demand for milk, and the quantity of milk supplied increased by 7 per cent,


A) milk is more of a luxury than a necessity.
B) milk is more of a necessity than a luxury.
C) the supply curve of milk has shifted rightward.
D) the price elasticity of supply of milk is greater than one.

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