a)Demand for coffee last Monday is shown in bold [labeled D(Monday)].

Refer to the figure above. On Tuesday the news featured a story that a storm wiped out the entire coffee crop in Brazil. On Wednesday, what will happen to the demand curve of coffee? Would it shift to the left D(A) or to the right D(B)? Explain why? (8 points)

b)Assuming consumers eat either rice or pasta for dinner every night. If the price of rice increases, what will happen in the pasta market. Show the new equilibrium price and quantity. (8 points)

c)What will happen to the demand curve for inferior good if the income of consumers decreased? Indicate the direction of new equilibrium price and quantity. (9 points)