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:

Negligently Designed

Refers to a product that was created without due care, leading to a potential risk of harm to the user.

Implied Warranty

An unwritten guarantee that the product sold meets certain criteria for usability and satisfaction.

Merchantability

A warranty, often implied by law, that goods sold are fit for the general purpose for which they are sold.

Fitness for a Particular Purpose

A legal warranty implying that a sold good is suitable for the specific use intended by the buyer, as made known to the seller at the time of purchase.