7. Suppose Frasier and Niles find out that newly released research shows that drinking coffee leads to an 80% decrease in the rate of developing spinal cancer. Which of the following is most likely to occur: (a) An increase only in Quantity Demanded of coffee. (b) An decrease only in Quantity Demanded of coffee. (c) An increase in Demand for coffee. (d) An decrease in Demand for coffee. (e) No change in the market for coffee. 8. Suppose Frasier and Niles find out when they walk into Cafe Nervosa that the price of coffee has increased by 80% from the previous day. Which of the following is most likely to occur: (a) An increase only in Quantity Demanded of coffee. (b) An decrease only in Quantity Demanded of coffee. (c) An increase in Demand for coffee. (d) An decrease in Demand for coffee. (e) No change in the market for coffee.9. 10. Suppose, instead, that Frasier and Niles nd out when they walk into Cafe Nervosa that the price of tea (a great substitute for coffee) has increased by 80% from the previous day. Ceteris paribus, which of the following is most likely to occur in the market for coffee: (a) An increase only in Quantity Demanded of coffee. (b) An decrease only in Quantity Demanded of coffee. (c) An increase in Demand for coffee. ((1) An decrease in Demand for coffee. (e) No change in the market for coffee. Suppose, instead, that Frasier and Niles nd out when they walk into Cafe Nervosa that the price of sugar (a good which Frasier and Niles enjoy combining with their coffee, as they feel the sweetness of the sugar nicely complements the bitterness of the coffee) has increased by 40% from the previous day. Ceteris paribus, which of the following is most likely to occur in the market for coffee: (a) An increase only in Quantity Demanded of coffee. (b) An decrease only in Quantity Demanded of coffee. (0) An increase in Demand for coffee. ((1) An decrease in Demand for coffee. ) (e No change in the market for coffee. I Shifts in Supply 11. The coffee growers, whose labor makes up 75% of the inputs to coffee production, ne- gotiate a new contract that entitles them to double their previous hourly wage. Ceteris paribus, which of the following is most likely to occur in the market for coffee: (a) An increase only in Quantity Supplied of coffee. ( ( b) An decrease only in Quantity Supplied of coffee. (0) An increase in Supply of coffee. ) ) d An decrease in Supply of coffee. (e No change in the market for coffee. 12. Now suppose instead, that coffee suppliers receive an email alerting them to the fact that they can expect to sell coffee next week for a price that is 30% higher than today. Ceteris paribus, which of the following is most likely to occur in today's market for coffee: (a) An increase only in Quantity Supplied of coffee