Use the following information to answer questions 1-5. The quantity of tea demanded,QD, depends on the price of tea, PT, and the price of coffee, PC. The quantity of tea supplied,QS, depends on the price of tea, PT, and the price of electricity, PE, according to the following equations:

QD= 12 - 5PT+ 3PC

QS= 30 + 2PT- 4PE

If the price of coffee is $4.00 and the price of electricity is $5.00,

If the price of coffee increases and the price of electricity decreases

Select one:

A.

The demand curve for tea shifts right and the supply curve for electricity shifts left.

B.

The demand curve for tea shifts right and the supply curve for electricity shifts right.

C.

The demand curve for tea shifts left and the supply curve for electricity shifts right.

D.

The demand curve for tea shifts left and the supply curve for electricity shifts left.

Clear my choice