Refer to the accompanying figure. Suppose the solid line shows the current demand for coffee. In response to a news story explaining that coffee causes heart disease, you should expect:

A. the demand curve to shift to D(A) because some people will stop drinking coffee.
B. neither a change in quantity demanded nor a shift in demand.
C. the demand curve to shift to D(B) in anticipation of higher future prices.
D. the quantity of coffee demanded to decrease, but no shift in the demand curve.


Answer: A

Economics

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