3. Use the concept of diminishing marginal utility to explain why customers eventually stop drinking coffee, even at a caf that provides free coffee refills.

For problems 4-9, draw a smooth, downward-sloping market demand curve for tea. Then show the effect of each of the indicated changes. Be sure to label the axes. Label the original demand curve demand. If the demand curve shifts, label the new demand curve demand.

4. Consumers expect the price of tea to increase significantly in the near future.

5. Consumers' incomes rise.

6. The price of coffee, a substitute for tea, decreases

7. The price of tea increases.

8. New research suggests that tea drinkers catch fewer colds

9. A British cruise ship docks in Boston and thousands of tea-loving tourists come ashore to buy T-shirts and tea.