The figure given below shows the demand and supply curves in the market for coffee. S 1 and D 1 are the original demand and supply curves.Figure 3.5

-Based on Figure 3.5, which of the following conditions would most likely move the point of equilibrium from A to B?
A)An increase in the income of a coffee buyer.
B)A decrease in the price of coffee.
C)A drought in Colombia, a major coffee producer, that affects the coffee harvest.
D)A decrease in the price of non-dairy creamers that are consumed along with coffee.
E)An increase in the price of tea, assumed to be a substitute for coffee.

Question

The figure given below shows the demand and supply curves in the market for coffee. S 1 and D 1 are the original demand and supply curves.Figure 3.5
​
 
-Based on Figure 3.5, which of the following conditions would most likely move the point of equilibrium from A to B?
A)An increase in the income of a coffee buyer. 
B)A decrease in the price of coffee. 
C)A drought in Colombia, a major coffee producer, that affects the coffee harvest. 
D)A decrease in the price of non-dairy creamers that are consumed along with coffee. 
E)An increase in the price of tea, assumed to be a substitute for coffee.

Quizplus · Accepted Answer

A drought in Colombia, a major coffee producer, would decrease the supply of coffee and shift the supply curve to the left from to _{, causing the equilibrium point to move from point A to point B, resulting in a higher equilibrium price and a lower equilibrium quantity. Choice A, B, D, and E would not shift the equilibrium point from A to B as they only affect either the demand or supply curve but not both.}

The Figure Given Below Shows the Demand and Supply Curves