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Figure: Demand for Coconuts
-(Figure: Demand for Coconuts) Look at the figure Demand for Coconuts. If coconuts are a normal good and the price of coconuts increases, it will be represented in the figure as a movement from:
A)A to B.
B)B to A.
C)C to A.
D)E to B.

Question

Use the following to answer questions :
Figure: Demand for Coconuts 
-(Figure: Demand for Coconuts) Look at the figure Demand for Coconuts. If coconuts are a normal good and the price of coconuts increases, it will be represented in the figure as a movement from:
A)A to B. 
B)B to A. 
C)C to A. 
D)E to B.

Quizplus · Accepted Answer

When the price of coconuts increases, the quantity demanded decreases, leading to a movement up the demand curve from point B to point A. This represents the typical reaction of consumers to a price increase for a normal good.

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