A Technological Improvement Lowers the Cost of Producing Coffee

question 109

Multiple Choice

A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will

• A) rise.
• B) fall.
• C) remain the same.
• D) rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves.

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Definitions:

Portuguese

Relating to Portugal or its people, language, or culture.

Feitorias

Portuguese trade posts or forts established primarily along the coasts of Africa and Asia for the purposes of trade, exploration, and colonial expansion.

Navigational Technology

Tools and systems used to determine the position and course of ships, aircraft, and other vehicles, increasingly based on GPS and other advanced technologies.

Portuguese

Refers to people from Portugal or of Portuguese descent, as well as the language spoken in Portugal and some regions of Africa, Asia, and South America.