Question

An increase in the price of coffee will cause

An increase in the price of coffee will cause

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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.

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