O Levels Economics (2281)•2281/12/O/N/24

Explanation
Demand Curve Shifts from Non-Price Determinants Steps:
- Identify that a change in demand from D1 to D2 refers to a shift in the demand curve, caused by factors other than coffee's price.
- Recall demand shifters: consumer income, tastes, prices of related goods, expectations, or population.
- Evaluate options: A and C affect related goods' prices or tastes toward substitutes; B affects production costs (supply shifter).
- Note ambiguity: Without a diagram showing if D2 is rightward (increase) or leftward (decrease), direction is unclear; D option missing.
Why B is correct:
- Not applicable; B shifts supply leftward due to higher costs (law of supply: higher input costs reduce quantity supplied at each price).
Why the others are wrong:
- A: Raises substitutes' prices, shifting coffee demand right (complements/substitutes price effect).
- C: Boosts tea demand, shifting coffee demand left as tea is a substitute.
Not enough information to select definitively without shift direction or full options.
Final answer: Not enough information.
Topic: Demand
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