Coffee and Tea Are Substitutes in Consumption

question 158

Multiple Choice

Coffee and tea are substitutes in consumption.If there is an increase in the price of coffee,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus in the tea market:

• A)will increase.
• B)will decrease.
• C)will not change.
• D)may change,but we cannot determine the change without more information.

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Definitions:

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The period of significant social and political upheaval in France between 1789 and 1799, resulting in the decline of monarchies and churches and the rise of democracy and nationalism.

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The exchange of animal furs (primarily beaver pelts) between traders and indigenous peoples in North America, a significant economic activity from the 16th to 19th centuries.

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The act of driving out British forces or authority, often in the context of struggles for independence by various nations.