A Technological Improvement Lowers the Cost of Producing Coffee

question 109

Multiple Choice

A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will

• A) rise.
• B) fall.
• C) remain the same.
• D) rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves.

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Definitions:

Interest Level

The degree of curiosity or concern one has in a subject or activity.

Teamwork

The cooperative effort by the members of a group to achieve a common goal.

Directive Style

A leadership approach characterized by providing clear, explicit instructions and expectations while closely supervising tasks.

Formal Structure

Organized and systematic arrangement of relationships, duties, and roles within an organization.