Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Illustrate graphically how each of the following events will impact the demand for cups of coffee and explain why demand changes.

a. Average hourly wages increase in the United States.
b. The state of California requires all coffee houses to post warnings to consumers of the cancer-causing components of coffee.
c. Coffee houses increase the price of coffee in order to pay their baristas more.

Sagot :

Answer:

A. If average hourly wages increases, this would incentivise workers to work more hours so as to earn more wages. As a result of increased hours, more cups of coffee would be produced. This would lead to a rightward shift of the demand curve

B. As a result of the warning, individuals would be less willing to buy coffee. This would lead to a leftward shift of the demand curve

C. If the price of coffee increases, it would lead to a upward shift up along the demand curve as people would be less willing to buy coffee.

Please check the attached images for the graphs

Explanation:

Only a change in the price of a good leads to a movement along the demand curve.

Other factors affecting demand lead to a movement of the demand curve either rightward or leftward

View image ewomazinoade
View image ewomazinoade
View image ewomazinoade
We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.