Questions: Question 5 The following will shift the demand curve for coffee outwards (to the right) A decrease in the price of pastries (a complementary good). A new study that links the drinking of coffee to certain stomach diseases. A decline in the price of coffee. A shift in supply.

The answer is A: A decrease in the price of pastries (a complementary good).

Explanation for each option:

1. A decrease in the price of pastries (a complementary good): This is correct. When the price of a complementary good, such as pastries, decreases, consumers are more likely to purchase both goods together. This increase in the consumption of pastries can lead to an increase in the demand for coffee, shifting the demand curve for coffee to the right.

2. A new study that links the drinking of coffee to certain stomach diseases: This is incorrect. Such a study would likely decrease the demand for coffee as consumers become concerned about potential health risks, shifting the demand curve to the left, not to the right.

3. A decline in the price of coffee: This is incorrect in the context of demand curve shifts. A decline in the price of coffee would result in a movement along the demand curve (an increase in quantity demanded), not a shift of the demand curve itself.

4. A shift in supply: This is incorrect. A shift in supply affects the supply curve, not the demand curve. While changes in supply can affect market equilibrium price and quantity, they do not directly cause the demand curve to shift.