Suppose Bad Weather Adversely Affects Coffee Plantations in Brazil

question 29

Multiple Choice

Suppose bad weather adversely affects coffee plantations in Brazil. If the demand for coffee increases during such a shortage, which of the following is likely to be true?

• A) Since the supply of coffee is elastic in the short-run, there won't be any change in the price of coffee.
• B) The supply curve for coffee will shift to the right.
• C) The demand for substitutes for coffee will fall.
• D) The equilibrium quantity of coffee will decrease.

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