Refer to the Above Diagram,which Shows Three Demand Curves for Coffee.Which

question 161

Multiple Choice

Refer to the above diagram,which shows three demand curves for coffee.Which would cause the change in the demand for coffee illustrated by the shift from D₁ to D₂?

• A) A decrease in the price of tea
• B) An increase in consumer incomes
• C) An increase in the price of sugar
• D) A technological improvement in the production of coffee

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Definitions:

Command Economy

An economic system in which the government or central authority makes all decisions about the production and distribution of goods and services.

Centralized

A system or organization where decision-making and administrative processes are concentrated at a single point or center.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured as the percentage increase in real GDP.

Production Possibility Frontier

A graph showing all the highest production options for two or more products, considering a certain amount of resources.