The increase in demand leads to an increase in both price
and output as shown to the right. As a result of the increased
demand at every price it is now profitable to sell output that
wasn't profitable before.
Prior to the increase in demand, any output above Q* was too costly to produce, now added output up to Q2 is profitable. The typical coffee house is now earning positive
profits, owners are earning better than in their next best opportunity.
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