What Would Happen to the Equilibrium Price and Quantity of Coffee

question 42

Multiple Choice

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

• A)Price would fall, and the effect on quantity would be ambiguous.
• B)Price would rise, and the effect on quantity would be ambiguous.
• C)Quantity would fall, and the effect on price would be ambiguous.
• D)Quantity would rise, and the effect on price would be ambiguous.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a vibrant market.

Financial Position

A snapshot of the resources, liabilities, and equity of an entity at a specific point in time, illustrating its economic standing.

Cash Flow From Assets

The total amount of money being transferred in and out of a company's operations, investments, and financing, specifically relating to its assets.

Cash Flow To Creditors

The amount of cash companies pay to their creditors and lenders, including payments for interest and principal on debt.