Asked by
Julio Robles
on Dec 11, 2024
Verified
Which of the following will decrease the demand for coffee?
A) the discovery that caffeine can cause heart problems
B) an increase in the price of coffee
C) an increase in the price of tea, a substitute for coffee
D) a decrease in the prices of coffee makers and coffee cups, complements to coffee
Caffeine
A stimulant found in coffee, tea, and other products, known for its ability to increase alertness and reduce feelings of tiredness.
Demand for Coffee
The total amount of coffee that consumers are willing and able to purchase at various prices during a certain time period, influenced by factors like price, income, and consumer preferences.
Price of Coffee
The cost at which coffee is sold, influenced by factors like production costs, supply and demand, and market competition.
- Ascertain the factors influencing the displacement of demand curves, notably the anticipation of future pricing changes and the price alterations of correlated goods.
- Grasp the concept of complementary and substitute goods and how changes in prices affect demand.
Verified Answer
B4
Learning Objectives
- Ascertain the factors influencing the displacement of demand curves, notably the anticipation of future pricing changes and the price alterations of correlated goods.
- Grasp the concept of complementary and substitute goods and how changes in prices affect demand.