Coffee and Sugar Are Complements

question 63

Multiple Choice

Coffee and sugar are complements. If the supply curve of coffee shifts leftward because of poor weather, then there will be

• A) an increase in the price of sugar.
• B) a decrease in the price of sugar.
• C) a leftward shift of the demand curve for coffee.
• D) a leftward shift of the supply curve for sugar.

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Definitions:

Loanable Funds

The total amount of capital available in the financial markets for borrowing, influenced by savings and investments.

Quantity Demanded

The total amount of a good or service that consumers are willing to buy at a given price over a specific time period.

Interest Rate

The percentage of a loan amount charged by a lender to a borrower for the use of assets, which can vary based on factors like inflation, the time value of money, and the risk involved.

Loanable Funds

The market where savers supply funds to borrowers, typically through financial intermediaries.