Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It will increase
B
It will decrease
C
It will remain the same
D
It is unpredictable
Understanding the Answer
Let's break down why this is correct
Answer
When people have more money, they often buy more coffee because they can afford it. Since coffee and donuts are complementary goods, meaning they go well together, an increase in coffee demand also leads to more demand for donuts. This means that as more people buy coffee, they will also want to buy more donuts to enjoy with it. Consequently, the equilibrium quantity of donuts in the market will increase because suppliers will notice the higher demand and produce more donuts to meet that need. For example, if a coffee shop sells more coffee and notices customers are also buying more donuts, they will likely increase their donut stock to keep customers happy.
Detailed Explanation
When more people want coffee, they also want donuts. Other options are incorrect because Some might think that if coffee is more popular, donuts won't sell as much; It's easy to think that nothing will change.
Key Concepts
shifts in demand
complementary goods
equilibrium quantity
Topic
Market Demand and Equilibrium Changes
Difficulty
hard level question
Cognitive Level
understand
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