Refer to the accompanying figure. Suppose the solid line shows the demand for coffee. If coffee and tea are substitutes, and the price of tea falls, then you would expect:
A)a decrease in the quantity of coffee demanded, but no shift in the demand curve.
B)an increase in the quantity of coffee demanded, but no shift in the demand curve.
C)the demand curve to shift to D(A).
D)the demand curve to shift to D(

Question

Refer to the accompanying figure. Suppose the solid line shows the demand for coffee. If coffee and tea are substitutes, and the price of tea falls, then you would expect: 
A)a decrease in the quantity of coffee demanded, but no shift in the demand curve.
B)an increase in the quantity of coffee demanded, but no shift in the demand curve.
C)the demand curve to shift to D(A). 
D)the demand curve to shift to D(

Quizplus · Accepted Answer

If coffee and tea are substitutes and the price of tea falls, then the demand for coffee will fall, meaning that the demand curve will shift to the left.

Refer to the Accompanying Figure