Asked by
lmad -Al Khattawi
on Oct 25, 2024
Verified
Refer to Figure 2.1.2. If the price of coffee decreases, from $7.50 to $6.00 per pound, which of the following will occur?
A) The quantity demanded of coffee will increase, from 6 to 7 million pounds per year.
B) The demand curve will shift to the right and the quantity demanded will increase to 10 million pounds per year.
C) Both moves, from A to B and then from B to C, will occur simultaneously.
D) It is possible that the market demand will show the move fro A to B, or that it moves directly from A to C.
Quantity Demanded
The total amount of a good or service that consumers are willing and able to purchase at a given price, in a given time period.
Coffee
A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.
Price Decreases
Refers to a reduction in the price of goods or services, often due to supply and demand factors.
- Ascertain how modifications in supply and demand affect the balance of the market.
Verified Answer
SA
Learning Objectives
- Ascertain how modifications in supply and demand affect the balance of the market.