A change in which of the following will cause a change in th

A change in which of the following will cause a change in the quantity demanded of coffee?

The price of green tea, a substitute for coffee

Solution

The answer is all of the above.

The given options all are the determinants of the demand such as the price, income, price of related goods and taste and preferences.

The green tea is a substitute for the coffe, so if there is a price drop of green tea people will consume more green tea and less tea and vice versa.

At lower prices more quantity of coffee is demanded and vice versa.

If the coffee is a normal good when the income of the comsumer rises the quantity demanded also rises.

A change in which of the following will cause a change in the quantity demanded of coffee? The price of green tea, a substitute for coffee SolutionThe answer is

Get Help Now

Submit a Take Down Notice

Tutor
Tutor: Dr Jack
Most rated tutor on our site