Which of the following would cause the demand curve for coffee to shift to the right (increase in demand)?

• A. A movement along the demand curve caused by a change in the quantity of coffee supplied
• B. An increase in consumers' income, if coffee is a normal good
• C. A decrease in the price of coffee
• D. An increase in the price of coffee

Answer: (B)

Verified step by step guidance

1. Understand that a demand curve shift means a change in demand at every price, not just a movement along the curve caused by price changes.
2. Recall that an increase in consumers' income will shift the demand curve to the right if the good is a normal good, because consumers buy more at every price.
3. Recognize that a movement along the demand curve happens when the price of the good itself changes, not a shift of the curve.
4. Note that a decrease in the price of coffee causes a movement down along the demand curve (increase in quantity demanded), not a shift of the demand curve.
5. Understand that an increase in the price of coffee causes a movement up along the demand curve (decrease in quantity demanded), not a shift of the demand curve.