Figure 2.1.2 -Refer to Figure 2.1.2. If the Price of Coffee Decreases

Multiple Choice

Figure 2.1.2
-Refer to Figure 2.1.2. If the price of coffee decreases, from $7.50 to $6.00 per pound, which of the following will occur?

A) The quantity demanded of coffee will increase, from 6 to 7 million pounds per year.
B) The demand curve will shift to the right and the quantity demanded will increase to 10 million pounds per year.
C) Both moves, from A to B and then from B to C, will occur simultaneously.
D) It is possible that the market demand will show the move fro A to B, or that it moves directly from A to C.