Asked by
Cassandra Trejo
on Oct 25, 2024Verified
Refer to Figure 2.1.2. The price of coffee is currently $6.00. and quantity demanded is 7 million pounds. Then there is a notable increase in the preference for coffee over other substitutes, like tea. Which move best describes this change?
A) A move from B to A
B) A move from B to C
C) A move from B to A, and then to C
D) A move from B to C, and then to A
Coffee
A beverage made from roasted and ground coffee beans, widely consumed globally for its stimulating effect.
Preference
An economic term referring to the assumption that individuals have the capacity to order or rank different bundles of goods or outcomes in terms of their satisfaction.
Substitutes
Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.
- Recognize the elements that may lead to alterations in the supply and demand curves.
- Comprehend how shifts in consumer tastes affect the demand curve.
Verified Answer
JA
Learning Objectives
- Recognize the elements that may lead to alterations in the supply and demand curves.
- Comprehend how shifts in consumer tastes affect the demand curve.