A poor harvest in Brazil reduces the supply of coffee beans. Which of the following correctly describes the resulting change in the market for coffee?
Economics · Unit 1 · Market forces · Market forces
Distinguish movements along from shifts of demand and supply curves; express each graphically and explain the impact on equilibrium price and quantity.
Practise this objective
AI-marked practice questions tied to QCAA mark schemes for this exact LO. Free to start.
Start free practicePractice questions for this objective
Full questions, answers and worked solutions unlock when you start a free practice session.
The market for avocados is initially in equilibrium at a price of \$4.50\) per kilogram and a quantity of 12,000 tonnes per month. A health campaign successfully convinces consumers that avocados provide significant health benefits. (a) Distinguish between a movement along the demand curve and a shift of the demand curve. (1 mark) (b) Identify whether the health campaign will cause a movement along or a shift of the demand curve, and state the direction of this change. (1 mark) (c) Explain the impact of the health campaign on the equilibrium price and equilibrium quantity in the avocado market. (1 mark)
Explain the difference between a movement along the supply curve and a shift of the supply curve when the market price of instant coffee increases following a rise in the price of coffee beans.