Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increased consumer preferences for coffee due to the festival atmosphere.
B
Decreased prices of alternative beverages leading to less coffee purchase.
C
The coffee shop increased its prices, attracting more customers.
D
Consumers are purchasing more coffee because they have less disposable income.
Understanding the Answer
Let's break down why this is correct
Answer
The festival changes what people want to buy, so the coffee shop’s specialty drink becomes more appealing even though the price is the same. When a festival brings more visitors, their tastes shift toward drinks that feel special or festive, making the coffee more desirable. This change in taste causes the whole demand curve to move rightward, meaning more coffee is purchased at every price point. For example, if the shop sells 100 cups per day normally, it might sell 150 cups during the festival because people now prefer that specialty brew.
Detailed Explanation
When a festival happens, people feel more excited and want to try local treats. Other options are incorrect because Some think that if other drinks become cheaper, people will buy more coffee; Increasing the price of coffee would normally make people buy less, not more.
Key Concepts
Shifts in Demand Curve
Consumer Preferences
Festival Economics
Topic
Shifts in Demand Curve
Difficulty
medium level question
Cognitive Level
understand
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