The Price of Coffee Increases Because of Low Crop Yields

question 79

Multiple Choice

The price of coffee increases because of low crop yields.If the consumer's utility schedule for coffee remains constant,we can predict that coffee consumption

• A) will increase.
• B) will decrease.
• C) will stay the same.
• D) will increase if the marginal utility of coffee diminishes and will decrease if the marginal utility of coffee increases.
• E) might change, but we need more information to determine if it increased, decreased, or did not change.

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Definitions:

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