Related to the Economics in Practice on p.69: Increased preference for coffee in China would most likely shift the demand curve for coffee to the ________ and lead to a(n)________ in the price of coffee,ceteris paribus.

Question

Quizplus · Accepted Answer

If the preference for coffee increases in China, it will most likely shift the demand curve for coffee to the right as consumers in China are demanding more coffee. This will lead to an increase in the price of coffee, ceteris paribus - meaning that all other factors affecting the price of coffee remain constant. Therefore, the correct answer choice is C, which states that the demand curve for coffee would shift to the right and lead to an increase in price.

Related to the Economics in Practice on P