ECON 505 According to leading coffee merchants, there will be a shortage in the global coffee market dueto Brazil's declining coffee production in 2014-2015. Brazil is the world's largest producer of coffee beans.

b.With the shortage, how would you expect the price of coffee beans to change in 2014?

c.Arabica coffee beans were being traded at seven-year lows in November 2013. If the demandfor coffee beans decreases further in 2014, along with the change mentioned above, how would you expect the equilibrium price and quantity of Arabica coffee beans to change?