Which of the following best represents the effects of a decrease in the price of coffee, other things being equal?

Question

Quizplus · Accepted Answer

A decrease in the price of coffee would lead to a movement along the demand curve for coffee, as consumers would demand more coffee at the lower price. This would result in a downward movement along the demand curve, represented by a decrease in quantity demanded. A shift in the demand curve would occur if there was a change in factors other than price that affect demand, such as a change in consumer preferences or income. As the question states "other things being equal," we can assume that the only change is in the price of coffee. Therefore, the correct answer is B.

Which of the Following Best Represents the Effects of a Decrease