Question

Suppose the demand for coffee suddenly increases in the United Kingdom. Which of the following is the most likely explanation? Group of answer choices A drought wiped out half of the world’s coffee crop The price of tea, a substitute, decreased The price of cream, a complement, increased The price of tea, a substitute, increased

Answer 1

The answer is: The price of tea, a substitute, increased

Step-by-step explanation:

Substitute goods are products that could be used by customers to satisfy the same need. Substitute goods replace one another.

Suppose there are two substitute products: A (tea) and B (coffee). If the price of product A increases, then the quantity demanded for product B increases (also the quantity demanded for product A would decrease).