The Figure Given Below Shows the Demand and Supply Curves

question 16

Multiple Choice

The figure given below shows the demand and supply curves in the market for coffee. S₁ and D₁ are the original demand and supply curves.Figure 3.5
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-Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?

• A)Demand has increased
• B)Demand has decreased
• C)Supply has increased
• D)Supply has decreased
• E)Quantity supplied has decreased

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Definitions:

Shadow Memory

A concept often used in computing and psychology to describe a process or storage that exists alongside the primary system or memory, subtly influencing or supporting it without being directly observable.

North America

A continent located in the Northern Hemisphere, largely bordered by the Atlantic, Pacific, and Arctic Oceans, including countries like Canada, the United States, and Mexico.

Japan

An island nation in East Asia, known for its rich culture, technological advancements, and historical significance.

Norway

A country in Northern Europe known for its high standard of living, robust welfare state, and stunning natural landscapes.