The first time Michel tasted coffee,he thought it was bitter and bad-tasting.The second time Michel had coffee,he thought that it was barely tolerable.Eventually,Michel started to enjoy coffee,and within a few months he was drinking several cups a day.In fact,if he did not drink several cups a day,he was miserable.This suggests that,for Michel,
A)demand for coffee has increased.
B)coffee is a need,not a want.
C)diminishing marginal utility does not apply to coffee consumption.
D)economic models cannot be applied to habit-forming substances.

Question

Quizplus · Accepted Answer

Michel's increasing consumption of coffee indicates an increase in demand. He started with disliking coffee, but eventually became dependent on it, suggesting an increase in his desire for it. Therefore, choice A is the best answer. Choice B is incorrect because coffee is not a necessity but rather a want. Choice C is incorrect because Michel's increasing consumption shows that he did not experience diminishing marginal utility. Choice D is incorrect because while some economic models may not apply to habit-forming substances, there are still economic principles at play in Michel's coffee consumption.

The First Time Michel Tasted Coffee,he Thought It Was Bitter