Question

An increase in the price of coffee will cause

An increase in the price of coffee will cause

Homework Answers

Answer #1

ANSWER:

An increase in the price of coffee will cause the demand of the substitute like tea to rise as more people will be drawn towards tea as the price of tea will be comparitively less then coffee as an increase in price of coffee will lead towards more expenditure of people wanting to drink coffee and therefore they will look to drink a substitute like tea and only the ardent lovers of coffee will purchase it , leading towards a lower demand of coffee and higher demand for a substitute like tea.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. According to law of supply: an increase in price will cause an increase in supply...
1. According to law of supply: an increase in price will cause an increase in supply of the commodity a. True b. False . 2. An increase in input price will always cause increase in supply a. True b. False
Consider the market for Starbucks coffee. Suppose that the price of coffee beans (an input) increases,...
Consider the market for Starbucks coffee. Suppose that the price of coffee beans (an input) increases, while the price of tea (a substitute) increases. What is certain to happen in the market for Starbucks coffee? There will be a decrease in the equilibrium quantity of Starbucks coffee. There will be a decrease in the equilibrium price of Starbucks coffee. There will be an increase in the equilibrium price of Starbucks coffee. There will be an increase in both the equilibrium...
Which of the following changes would cause a stock price to increase? Increase to the dividend...
Which of the following changes would cause a stock price to increase? Increase to the dividend growth rate Increase to the stock’s beta Increase to the required rate of return Increase to the risk-free rate
You are interested in the market for Starbucks coffee. The price of Thomas Hammer Coffee (a...
You are interested in the market for Starbucks coffee. The price of Thomas Hammer Coffee (a substitute) decreases and at the same time the price of the coffee beans that Starbucks uses in its coffee production decreases. As a result, we notice that the price of Starbucks coffee went down and that fewer cups of Starbucks coffee are being sold. Which of the following best explain these changes? Group of answer choices The demand for Starbucks coffee increased and the...
Suppose that new medical research indicates that CONSUMPTION of Coffee can cause Colon Cancer, what economic...
Suppose that new medical research indicates that CONSUMPTION of Coffee can cause Colon Cancer, what economic effects regarding PRICE and QUANTITY of Coffee will this research have on DEMAND for Coffee and SUPPLY of Coffee?
Suppose that new medical research indicates that CONSUMPTION of Coffee can cause Colon Cancer, what economic...
Suppose that new medical research indicates that CONSUMPTION of Coffee can cause Colon Cancer, what economic effects regarding PRICE and QUANTITY of Coffee will this research have on : a) DEMAND for Coffee b) SUPPLY of Coffee. Draw the two diagrams.
An increase in the selling price will cause the consumer surplus: a. decrease. b. change. C....
An increase in the selling price will cause the consumer surplus: a. decrease. b. change. C. increase. d. do not change.
“Because apples and oranges are substitutes, an increase in the price of or- anges will cause...
“Because apples and oranges are substitutes, an increase in the price of or- anges will cause the demand for apples to increase. This initial shift in demand for apples results in a higher price for apples; this higher price will cause the demand curve for apples to shift to the right.” Which of the follow- ing correctly comments on this statement? a. The statement is false because a change in the price of apples would not change the demand for...
If a 5 percent reduction in the price of coffee leads quantity demanded for coffee to...
If a 5 percent reduction in the price of coffee leads quantity demanded for coffee to increase by 10 percent, demand is: A.Elastic B.Perfectly elastic c.inelastic D.unit elastic
Ceteris paribus, a decrease in the U.S. price level will cause an increase in U.S. exports....
Ceteris paribus, a decrease in the U.S. price level will cause an increase in U.S. exports. an increase in U.S. imports. the aggregate demand curve to shift to the left.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT