Suppose the Market for Coffee Is Initially in Equilibrium

question 108

Multiple Choice

Suppose the market for coffee is initially in equilibrium. If the tea harvest is bad in a particular year, then identify the most likely impact on the equilibrium price and quantity of coffee.

• A) The equilibrium price of coffee will increase, and the equilibrium quantity of coffee will decrease.
• B) Both the equilibrium price and the equilibrium quantity of coffee will increase.
• C) The equilibrium price of coffee will decrease, and the equilibrium quantity of coffee will increase.
• D) Both the equilibrium price and the equilibrium quantity of coffee will decrease.
• E) There will be no impact on the equilibrium price and quantity of coffee.

---

Definitions:

Critical Thinkers

Individuals who actively and skillfully conceptualize, apply, analyze, synthesize, and evaluate information to reach an answer or conclusion.

Belief and Doubt

The state of accepting something as true versus the feeling of uncertainty or lack of conviction.

John Rawls

A prominent American philosopher known for his work in political philosophy, especially his theory of justice as fairness.

Important Aspirations

Goals or ambitions that hold significant value to an individual or group, often guiding their actions and decisions.