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

Answer: (D)

Verified step by step guidance

1. 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.
2. Recall that for a normal good, an increase in consumer income leads to an increase in demand, shifting the demand curve to the right.
3. 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.
4. 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.
5. 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.