A Technological Improvement Lowers the Cost of Producing Coffee

question 428

Multiple Choice

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

• A) fall.
• B) remain the same.
• C) rise.
• 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:

Darwin

Charles Darwin, a 19th-century naturalist known for his contributions to the science of evolution and his theory of natural selection.

Cultural Rules

Norms and expectations that govern behavior within a society or group, often unwritten and learned through socialization.

Cognitive Appraisals

The mental process of interpreting and making sense of a situation or event, which can influence emotional responses.

Action Tendencies

The predispositions to behave in certain ways in response to specific emotions or feelings.