How would prices of coffee and tea react in a free market

Reference no: EM131403197

1. What is the opportunity cost to society of a 100-mile truck trip? Why may the price of the gasoline used by the truck not adequately represent that opportunity cost?

2. Suppose that because of a new disease that attacks coffee plants, far more labor and other inputs are required to harvest a pound of coffee than before. How may that change affect the efficient allocation of resources between tea and coffee? How would the prices of coffee and tea react in a free market?

Reference no: EM131403197

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