Chaptor 3 InQuizitive: Chaptor 3: The Market at Work: Supply and Demand INUIZIII
ID: 1160944 • Letter: C
Question
Chaptor 3 InQuizitive: Chaptor 3: The Market at Work: Supply and Demand INUIZIIIVE Chapter 3: The Market at Work: Supply and Demand E Page(s) 89-92 3.4. How do supply and demand interact to create equilibrium? Suppose there are seven coffee shops located on the same busy street. Iftwo of the coffee shops close, which of the following will occur, holding all else fixed? Correct Answer(s) Drag appropriate answer(s) here The supply of coffee will increase, since the remaining shops will sell more than before The supply of coffee will d The demand for coffee will decrease. The price of coffee will increase Drog appropriate answerís) here Incorrect Answer(s)Explanation / Answer
Answer : When two coffee shops has been closed than the factors likely to happen are :
Where as it supply of coffee does not increases as it depends upon capacity of the shop so it is incorrect option and the demand of coffee decreases is not a correct option as other things remain same in this scanerio.