What Will Happen to the Equilibrium Price and Quantity of Coffee

question 217

Multiple Choice

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

• A) The price will fall and the effect on the quantity is uncertain.
• B) The quantity will increase and the effect on the price is uncertain.
• C) The quantity will decrease and the price will rise.
• D) The quantity will increase and the price will remain unchanged.

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Definitions:

Antidiuretic Hormone

A hormone released by the pituitary gland that signals the kidneys to increase water reabsorption in the blood, thereby controlling the water balance in the body.

Potassium Secretion

The process by which cells actively transport potassium ions out of the cell or into the extracellular fluid or lumen of an organ.

Infundibulum

A funnel-shaped structure, often referring to parts of the brain (pituitary stalk) or reproductive system (oviduct entrance) in humans.

Hypothalamus

The hypothalamus is a region of the brain that plays a crucial role in hormone regulation, temperature control, hunger, thirst, and circadian rhythms.