Use the figure below to answer the following questions.
Table 3.5.2
Demand and Supply Schedules for Cups of Coffee each day at CoolU

-Refer to Table 3.5.2.A premature frost destroys half the coffee trees.This change would be represented as a
A)leftward shift of the demand curve.
B)rightward shift of the demand curve.
C)leftward shift of the supply curve.
D)rightward shift of the supply curve.
E)movement down along the supply curve.

Question

Use the figure below to answer the following questions.
Table 3.5.2
Demand and Supply Schedules for Cups of Coffee each day at CoolU
 
-Refer to Table 3.5.2.A premature frost destroys half the coffee trees.This change would be represented as a
A)leftward shift of the demand curve. 
B)rightward shift of the demand curve. 
C)leftward shift of the supply curve. 
D)rightward shift of the supply curve. 
E)movement down along the supply curve.

Quizplus · Accepted Answer

A premature frost that destroys half the coffee trees would decrease the quantity of coffee supplied at each price level. This decrease in quantity supplied would be represented as a leftward shift of the supply curve, resulting in higher prices and lower quantities demanded.

Use the Figure Below to Answer the Following Questions