« previous next »

Author Question: Suppose that the market for coffee is in equilibrium at a price of 9.50 per pound and a monthly ... (Read 83 times)

K@

  • Hero Member
  • *****
  • Posts: 608
on: Jun 29, 2018
Suppose that the market for coffee is in equilibrium at a price of 9.50 per pound and a monthly quantity of 20 million pounds. News of a drought in Brazil arrives so that people know that the supply of coffee months from now will be sharply reduced.
 
  What, if anything, will happen in the coffee market now? Explain.

Question 2

Which of the following does NOT cause a shift in demand?
 
  A) change in income
  B) change in tastes
  C) change in the price of the good
  D) change in the price of a related good


Bsand8

  • Sr. Member
  • ****
  • Posts: 327
Reply #1 on: Jun 29, 2018
Answer to Question 1

The expectations of reduced supplies and higher prices in the future will cause current demand to increase and the market clearing price to rise.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Hydrostatic Equilibrium Hydrostatic Equilibrium
Chemical equilibrium and the law of mass action. Chemical equilibrium and the law of mass action.
Hydroelectric power: 2013 Global Market Hydroelectric power: 2013 Global Market
Coffee will not sober you up. An intoxicated person who drinks coffee will end up being a stimulated Coffee will not sober you up. An intoxicated person who drinks coffee will end up being a stimulated
The dissociation equilibrium constants for the protonated form of alanine (a diprotic amino ... The dissociation equilibrium constants for the protonated form of alanine (a diprotic amino ...
Hardy–Weinberg Equilibrium Genotype Frequencies for Three Alleles of a Gene Hardy–Weinberg Equilibrium Genotype Frequencies for Three Alleles of a Gene
Video: Parathyroid hormone (bone resorption) & Calcitonin (bone deposition)

For a complete list of videos, visit our video library