Determine what will happen in the market for coffee

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Suppose that the market for coffee is initially in equilibrium. Suppose that a technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. Use supply and demand analysis to determine what will happen in the market for coffee. In other words, determine

(a) if there will be any shift in the demand for coffee;

(b) if there will be any shift in the supply of coffee;

(c) if the equilibrium price of coffee will increase, decrease, or stay the same;

(d) if the equilibrium quantity of coffee will increase, decrease, or stay the same.

Reference no: EM13316388

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