What Will Happen to the Equilibrium Price and Quantity of Coffee

question 72

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

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Definitions:

Two-tailed Hypothesis

A statistical test hypothesis that considers both directions of effect, allowing for testing differences in either direction.

Degrees of Freedom

The count of individual values or magnitudes that may be allocated to a statistical distribution without breaking any limitations.

Sample Size

The number of observations or individuals taken from a population to form a sample for the purpose of statistical analysis.

Variance Accounted

A measure of the proportion of the total variance in a dataset that is explained or accounted for by a statistical model or factor.