SACE Stage 2 Economics Practice Questions - SACE Stage 2 Economics External Assessment Exam

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Which of the following scenarios will cause a rightward shift of the market demand curve for coffee, rather than a movement along the demand curve?

A decrease in the market price of coffee beans. An increase in consumer disposable income, assuming coffee is a normal good. An increase in the cost of labor used in coffee shops. An improvement in coffee harvesting technology.

Correct Answer:

An increase in consumer disposable income, assuming coffee is a normal good.

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