Refer to the diagram below of three demand curves for coffee. Which of the following would cause a shift in coffee demand from D1 to D2?
A. A decrease in the price of tea
B. An increase in consumer incomes
C. An increase in the prices of cream and sugar
D. A decrease in the price of coffee
Answer: B
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If a country produces only two goods, it is possible to have an absolute advantage in the production of both goods
Indicate whether the statement is true or false
Classical economists believed that if saving were greater than investment, the interest rate would _____, causing saving to _____ and investment to _____ until the two were equal
a. rise; decrease; increase b. fall; decrease; increase c. fall; increase; decrease d. rise; increase; decrease e. fall; increase; increase
For a normal good, an increase in consumer income will cause the market demand for the product to:
a. decrease, which is a shift to the left of the demand curve. b. decrease, which is a shift to the right of the demand curve. c. increase, which is a shift to the left of the demand curve. d. increase, which is a shift to the right of the demand curve.
An example of a public good is: a. a tornado siren
b. a cake. c. a personal computer. d. a DVD player.