You observe that in the market for coffee that both the equilibrium price of coffee and the equilibrium quantity have increased. You predict that the demand for coffee

Question

Quizplus · Accepted Answer

If both the equilibrium price and quantity have increased, it suggests that the demand for coffee has increased while the supply of coffee has remained the same. If there was a decrease in supply, the equilibrium quantity would not have increased, and if the increase in supply was greater than the increase in demand, the equilibrium price would have decreased, not increased. Therefore, the best choice is (C) - the demand for coffee has increased with no change in the supply of coffee.

You Observe That in the Market for Coffee That Both