Use the following graph of the demand for coffee: Refer to the above diagram of three demand curves for coffee. An increase in the price of coffee, other factors constant, would cause a:

Question

Use the following graph of the demand for coffee:  Refer to the above diagram of three demand curves for coffee. An increase in the price of coffee, other factors constant, would cause a:

Quizplus · Accepted Answer

An increase in the price of coffee would result in a movement along the demand curve, rather than a shift in the curve. Consumers would buy less coffee at a higher price, resulting in a movement from point b to point a along the same demand curve, as shown in Option D.

Use the Following Graph of the Demand for Coffee