The Figure Below Shows Three Demand Curves for Coffee

question 167

Multiple Choice

The figure below shows three demand curves for coffee. An increase in the price of coffee, other factors constant, would cause a

• A) shift from D₁ to D₃.
• B) shift from D₁ to D₂.
• C) movement from point a to point b.
• D) movement from point b to point a.

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Definitions:

Price of Spice

The specific cost associated with purchasing spice, which could vary based on market factors, quality, and availability.

Price of Whips

The cost at which whips are sold in the market, which can be influenced by factors like material costs and demand.

Price of Leather Jackets

The monetary value at which leather jackets are offered for sale in the market.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specified time frame.