Question

This Question: 1 pt According to a news article on bloomberg.com, the demand for coffee is increasing as "milennials' seemingly unquenchable thirst for coffee is helping le Source: Marvin G. Persa "Coffee-Loving Millennials Push Demand to a Record" bloomberg.com, October 30, 2016 In the market for ooffee, the efect of the growth in milennial demand for coffee is the demand curve will In the market for coffee, the effect of dry weather and droughts on coffee crops is the supply curve will The new markat equilbrium will be where OA he new demand ourve intesects the new supply ourve. OB teorgnal demand ourve intersects the new supply curve. OC he new demand ourve irerects the original demand curve. OD tenew demand ourve inesects the original supply curve The aricle contains a chat showing changes in woriddwide sales of coffee from 2006 through 2016. The chart is labeled, "World demand has expanded in the par Dea on the guarthy of coee sold and data on the demand for coffe the same thing tthe demand for coee has not changed then. OA tegartty of ooee soid can increase the supply ourve shits to the right OB teqahy of ooee sold can increase the supply aunve shits to the le Oc tegatty of oofee sold cannot increase OB tegaray of cofee sold can increase the demand ourve does nol shn the aticlen soes that oonupion ising as sppes are geings igh orpe in Bra and Aia have been hampered by dy wther and droughs w he denan s g e ningy hte hr f g pah demand adA hesame r the demnd oun w d wt he sy w wwwd e e y 1ourve egdang 08 vg e t i he p d b Won nnd ww. dere oh w o 1 end te

Answer 1

In the market for coffee,the effect of the growth in millennial demand in coffee is the demand curve will shift outward or upward.This would lead to the increase in the demand.Here the demand curve shifts outward because there has been a 'change in the demand' due to the factors other than the price.Here the quantity demand at a specific price hasn't risen but the whole curve shifts due to rise in the purchasing power i.e.rise in the number of millennials.

In the market for coffee,the effect of dry weather and drought on the supply curve will lead to an inward or downward shift in the supply curve of the coffee. This would lead to a decrease in the supply due to the negative changes in the factors other than the price that determines the supply of an commodity.Here that factor is the dry weather and drought.

The new market equilibrium will be where,the new demand curve intersects the new supply curve.i.e.option A.

Data on the quantity sold,shows the amount of coffee that actually has been sold in the market at a specific price.This is determined by the intersection of supply and demand curves.Data on the demand of coffee shows,how much quantity of commodity would be demanded at different prices by the consumers.I think both are different things.

If the demand of coffee does not changes,then the quantity of coffee sold can increase if the supply curve shifts to the right. i.e.option A.This is because though the demand is constant as there is no change in it but here the supply increases due to the rightward shift which would decrease the prices in the market and thus the supply curve would intersect the demand curve at a lower place,leading to the rise in actual quantity of commodity sold.