Consider the market for coffee beans

Assignment Help Business Economics

Reference no: EM13984288

Consider the market for coffee beans. Suppose that the prices of all other caffeinated beverages go up 30% while, at the same time, a new fertilizer boosts production at coffee plantations dramatically. Which of the following best describes what is likely to happen to the equilibrium price and quantity of coffee beans? Circle the correct answer, or eliminate the four answers that do not apply to indicate your response

A. Both the equilibrium price and the quantity will rise.

B. The equilibrium price will rise but the equilibrium quantity will fall.

C. The equilibrium price may rise or fall but the equilibrium quantity will rise for certain.

D. Neither the price change nor the quantity change can be determined for certain.

E. None of the above.

Reference no: EM13984288

Questions Cloud

Presidential executive acts and religious tradition : Aristotle argues that whatever is the good in itself, it must be something sought which meets three criteria, namely that it must be. Among the rights discussed in class (& the handout), private property rights where justified on the grounds that the..

Activity of the soul according to virtue : Aristotle’s moral theory argues that _________________ is the primary end of human action. By “activity of the soul according to virtue,” Aristotle defines his subtle notion of ________.

Advantage of consumers with unfair pricing policies : Public policy toward monopolies Suppose that the government is concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. The government views electricity as a public good that is likely to be produced i..

It would not cost firm to product anything in the short run : It would not cost a firm to product anything in the short run if price were:

Consider the market for coffee beans : Consider the market for coffee beans. Suppose that the prices of all other caffeinated beverages go up 30% while, at the same time, a new fertilizer boosts production at coffee plantations dramatically. Which of the following best describes what is l..

Major newspaper that attempts to analyze statistical data : Find an article in a major newspaper that attempts to analyze statistical data. Summarize it , and relate what you understand about the interpretation. Do you agree with the analysis as presented in the article?

Response to the foreign recession : Explain the likely effects of a U.S. recession on the demand for Canadian exports. What would be the effect on Canadian aggregate demand? Suppose the Bank of Canada viewed its monetary policy as being appropriate (for keeping output close to potentia..

Reliable packaging is a perfectly competitive firm : Reliable packaging is a perfectly competitive firm. Its output is 20,000 units a day; its daily total revenue is $750,000; its average total cost is $37.50; and its average variable cost is $27.50. It is operating at the output level where average to..

Derive and graph foreign export supply curve : Derive and graph foreign export supply curve and find the price that would prevail in Foreign in the absence of trade. Allow Foreign and Home to trade with each other. Graph equilibrium under free trade. What is the world price and the volume of trad..

User Account

All Pages