Coffee and tea are substitutes in consumption. If there is a DECREASE in the price of coffee, aming a po curve, total surplus in the teamarket Owill not change. Ob may change, but we cannot determine the change without more information Os will increase

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Coffee and tea are substitutes in consumption. If there is a DECREASE in the price of coffee, suming a positively sloped supply curve and a negatively sloped demand
curve, total surplus in the tea market
O will not change.
Ob may change, but we cannot determine the change without more information.
Os will increase
Od will decrease.
Transcribed Image Text:Coffee and tea are substitutes in consumption. If there is a DECREASE in the price of coffee, suming a positively sloped supply curve and a negatively sloped demand curve, total surplus in the tea market O will not change. Ob may change, but we cannot determine the change without more information. Os will increase Od will decrease.
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