What Will Happen to the Equilibrium Price and Quantity of Coffee

question 217

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

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