The figure below shows three demand curves for coffee. Which of the following would cause a shift in coffee demand from D₁to D₂?

Question

Quizplus · Accepted Answer

An increase in consumer income would shift the demand curve for coffee to the right (from DS1U1B11S1U1B0S1U1B1 to DS1U1B12S1U1B0), indicating that consumers are willing and able to buy more coffee at every price. A decrease in the price of tea (A) would not directly affect coffee demand. An increase in the prices of cream and sugar (C) would shift the supply curve for coffee, not the demand curve. A decrease in the price of coffee (D) would result in a movement along the same demand curve, not a shift in demand.

The Figure Below Shows Three Demand Curves for Coffee