Refer to the above diagram, which shows three demand curves for coffee. Which wo
ID: 1111166 • Letter: R
Question
Refer to the above diagram, which shows three demand curves for coffee. Which would cause the change in the demand for coffee illustrated by the shift from D1 to D3?
A. An increase in consumer incomes
B. A technological improvement in the production of coffee
C. A decrease in the price of sugar
D. A decrease in the price of tea
A. An increase in consumer incomes
B. A technological improvement in the production of coffee
C. A decrease in the price of sugar
D. A decrease in the price of tea
$5 2 4 6 8 10 12 14 16 18 20 Quantity demanded (thousands of bushels per week)Explanation / Answer
D1 to D3 represents a decrease in demand for coffee.
A decrease in the price of tea will decrease the demand for coffee.
D. A decrease in the price of tea.