In the local market for coffee,a normal good,the price will _____ and the quantity will _____ if new coffee shops open and consumers' incomes decrease because of a recession.

Question

Quizplus · Accepted Answer

When new coffee shops open, it increases the supply of coffee, which will lead to a decrease in price. Also, when consumers' incomes decrease, they will have less disposable income to spend on coffee, leading to a decrease in demand. The decrease in both demand and supply will lead to a decrease in the quantity of coffee sold.

In the Local Market for Coffee,a Normal Good,the Price Will