posted by Greg
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.