Multiple Choice
Which of the following changes would cause the demand curve for coffee to shift (not a movement along the curve)?
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3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
Multiple Choice
Which of the following would cause the demand curve for coffee to shift to the right (increase in demand)?
A
A movement along the demand curve caused by a change in the quantity of coffee supplied
B
An increase in consumers' income, if coffee is a normal good
C
A decrease in the price of coffee
D
An increase in the price of coffee
Verified step by step guidance1
Understand that a demand curve shift means a change in demand at every price, not just a movement along the curve caused by price changes.
Recall that an increase in consumers' income will shift the demand curve to the right if the good is a normal good, because consumers buy more at every price.
Recognize that a movement along the demand curve happens when the price of the good itself changes, not a shift of the curve.
Note that a decrease in the price of coffee causes a movement down along the demand curve (increase in quantity demanded), not a shift of the demand curve.
Understand that an increase in the price of coffee causes a movement up along the demand curve (decrease in quantity demanded), not a shift of the demand curve.
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