Assuming Insects Destroyed Most of the Coffee Crops in Key

question 33

Multiple Choice

Assuming insects destroyed most of the coffee crops in key coffee-producing countries worldwide,which of the following would most likely occur within the coffee market?

• A)Coffee prices would increase.
• B)Coffee prices would decrease.
• C)Demand for coffee would increase.
• D)Demand for coffee would decrease.

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Definitions:

Reference Point

A baseline or standard from which changes are measured, often used in decision-making and behavioral economics.

Consumer Decision

The process by which individuals select goods or services to fulfill their needs and wants.

Equilibrium Point

A state in which market supply and demand balance each other, and as a result, prices become stable.

Endowment Effect

A psychological and behavioral economics phenomenon where individuals value an owned object higher than a similar object they do not own.