The figure given below shows the demand and supply curves in the market for coffee. S 1 and D 1 are the original demand and supply curves.Figure 3.5

-Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?
A)Demand has increased
B)Demand has decreased
C)Supply has increased
D)Supply has decreased
E)Quantity supplied has decreased

Question

The figure given below shows the demand and supply curves in the market for coffee. S 1 and D 1 are the original demand and supply curves.Figure 3.5
​
 
-Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?
A)Demand has increased 
B)Demand has decreased 
C)Supply has increased 
D)Supply has decreased 
E)Quantity supplied has decreased

Quizplus · Accepted Answer

The decrease in the quantity demanded from 30 units to 20 units at the same price suggests that demand has decreased. If demand had increased, we would expect a larger quantity demanded at the same price as before.

The Figure Given Below Shows the Demand and Supply Curves