When the Demand for Coffee Increases,ceteris Paribus,the Equilibrium Price Will

question 2

Multiple Choice

When the demand for coffee increases,ceteris paribus,the equilibrium price will also increase because

• A)A shortage exists at the old equilibrium price.
• B)There must be a surplus of the good.
• C)The market supply and demand curves do not intersect.
• D)Market demand must be upward-sloping.

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Definitions:

Disposable Income

Financial assets available to households for expenditure and savings after income taxes.

Inventory Investment

The net change in physical inventory levels for businesses over a certain period, indicating how much companies are spending to stock goods.

Inventory

The complete quantity of products and materials kept in inventory by a company, meant for sale or to be used in manufacturing.

Interest Rate

The piece of a loan that accumulates interest for the borrower, often specified as a yearly percentage of the loan's existing outstanding balance.