The Below Figure Shows the Demand and Supply Curves in the Market

question 23

Multiple Choice

The below figure shows the demand and supply curves in the market for coffee.S₁ and D₁ are the original demand and supply curves. Figure 3.5 Based on Figure 3.5, which of the following conditions would most likely move the point of equilibrium from A to D?

• A)An increase in the income of a coffee buyer.
• B)A decrease in the price of coffee.
• C)A drought in Colombia, a major coffee producer, that affects the coffee harvest.
• D)A decrease in the price of non-dairy creamers that are consumed along with coffee.
• E)An increase in the price of tea, assumed to be a substitute for coffee.

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Definitions:

Gordon's Jewelers

A jewelry retailer known for selling a variety of jewelry items, often focusing on diamond and fine jewelry.

Periodic System

An accounting system where inventory is updated at specific periods rather than continuously, typically used for calculating cost of goods sold at the end of an accounting period.

Ending Inventory

The aggregate value of products available for purchase at the conclusion of a financial period.

LIFO Method

Last In, First Out method; an inventory valuation technique where the latest items added to inventory are the first ones removed during sales.