I am answering a mutiple choice question and there are two that seem correct.
One answer is "Supply will increase"
The other is the other is "There will be movement along the supply curve to a higher quantity supplied."
What is the diference between these two answers??
Or am I totally off? Here is the question.
An increase in the price of coffee will have what effect on the market for coffee?
--Demand will increase
--Supply will increase
--There will be movement along the supply curve to a higher quantity supplied
--There will be movement along the demand curve to a higher quantity demanded
--None of the above
just because the increase of price, the actualy supply will increase, but the movement along the supply curve to a higher quantity supplied would be correct
still do not see a diference in the two answers. It is leading me to surmize that "None of the above" is the correct answer.
Possible because true answer would be that demand will decrease. Coffee would take 3 years to increase based on price of today.
Based on the options provided, it seems like the question is asking about the effect of an increase in the price of coffee on the market for coffee. Let's break down the difference between the two answers that you're unsure about:
1. "Supply will increase": This statement means that the quantity of coffee supplied to the market will increase. In other words, coffee producers will be willing and able to supply a higher quantity of coffee at the given market price. This implies a rightward shift of the supply curve.
2. "There will be movement along the supply curve to a higher quantity supplied": This statement suggests that the price increase will cause a movement along the existing supply curve, resulting in a higher quantity of coffee supplied. Essentially, it means that coffee producers will adjust their quantity supplied along the same supply curve in response to the price change.
To summarize, the difference between these two answers is that the first answer emphasizes the idea of a supply increase (indicating a shift of the supply curve), while the second answer focuses on movement along the supply curve to a higher quantity supplied (no shift, just a change in quantity supplied along the existing curve).
Now, let's apply this information to the given question about the market for coffee:
An increase in the price of coffee will likely result in:
- Movement along the supply curve to a higher quantity supplied (according to answer choice 3). This means that coffee producers will adjust the quantity of coffee they supply at the new higher price level.
It is important to note that in this specific question, the change mentioned is related to the supply side of the market, rather than the demand side. Therefore, the correct answer is not "Demand will increase" as stated in option 1.
Feel free to ask if you have any further questions or need clarification!