What Would Happen to the Equilibrium Price and Quantity of Coffee

question 42

Multiple Choice

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

• A)Price would fall, and the effect on quantity would be ambiguous.
• B)Price would rise, and the effect on quantity would be ambiguous.
• C)Quantity would fall, and the effect on price would be ambiguous.
• D)Quantity would rise, and the effect on price would be ambiguous.

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Definitions:

Low Inventory

A condition where the quantity of goods available in stock is below the desired level, potentially leading to stockouts and lost sales opportunities.

Myopic Loss Aversion

The tendency of investors to have a greater sensitivity to losses than to gains, often leading to overly conservative investment choices that avoid risk.

Retirement Need

Retirement need refers to the estimated financial requirement a person will have after retiring from work, considering factors like living expenses, healthcare costs, and planned activities.

Debt-Free

A state in which an individual or entity has no outstanding debt obligations.