In a market for coffee shop drinks, who creates the demand curve?

• A. Consumers (buyers), based on their willingness and ability to pay at different prices
• B. Workers in coffee shops, by choosing how many hours to work
• C. Coffee shop owners (sellers), by deciding how much to produce at different prices
• D. The government, by setting the market price and quantity traded

Answer: (A)

Verified step by step guidance

1. Understand the concept of a demand curve: it represents the relationship between the price of a good and the quantity that consumers are willing and able to purchase at each price.
2. Identify the economic agents involved: consumers (buyers), workers, sellers (producers), and the government.
3. Recall that the demand curve is derived from consumers' preferences and purchasing decisions, reflecting their willingness and ability to pay for different quantities at various prices.
4. Recognize that workers and sellers influence supply, not demand; workers decide labor supply, and sellers decide production quantities based on prices.
5. Note that the government can influence the market through policies but does not directly create the demand curve, which is fundamentally shaped by consumers.