Scelta multipla
Which of the following is most likely to shift the demand curve for coffee to the right (increase demand), holding the price of coffee constant?
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3. Supply and Demand
Shifting Demand
Scelta multipla
Which of the following changes would shift the demand curve for coffee to the right (increase demand), holding the price of coffee constant?
A
A decrease in consumer income, assuming coffee is a normal good
B
An increase in the price of coffee
C
An increase in the price of tea, assuming tea is a complement to coffee
D
An increase in consumer income, assuming coffee is a normal good
Guida verificata passo dopo passo1
Understand that a demand curve shifts when factors other than the good's own price change, such as income, prices of related goods, tastes, or expectations.
Recall that for a normal good, an increase in consumer income leads to an increase in demand, shifting the demand curve to the right.
Recognize that a decrease in consumer income would decrease demand for a normal good, shifting the demand curve to the left, so this does not increase demand.
Know that an increase in the price of the good itself (coffee) causes a movement along the demand curve, not a shift of the demand curve.
Understand that if tea is a complement to coffee, an increase in the price of tea would decrease the demand for coffee, shifting the demand curve to the left, not to the right.
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