Coffee and Sugar Are Complements

question 390

Multiple Choice

Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be

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

Analyze the relationship between market structures, price setting, and the ability of firms to engage in price discrimination.

Understand the economic outcomes of regulating monopolies, including the impact on prices, output, and economic efficiency.

Examine the reasons why monopolies engage in price discrimination and the impact of such practices on profits and welfare.

Evaluate the effects of price discrimination on social welfare, including changes in consumer surplus, producer surplus, and deadweight loss.