Question
Suppose that the supply schedule of Indonesian Coffee beans is as follows: Price of Indonesian coffee beans (per pound)Quantity of Indonesian coffee beans supplied (pounds)$4.00-6,000,
Suppose that the supply schedule of Indonesian Coffee beans is as follows:
Price of Indonesian coffee beans (per pound)Quantity of Indonesian coffee beans supplied (pounds)$4.00-6,000, $3.50-5,000, $3.00-4,000, $2.50-3,000, $2.00-2,000
Suppose that Indonesian Coffee beans can be sold only in Indonesia. The domestic Indonesian demand schedule for Indonesian Coffee beans is as follows:
Price of Indonesian coffee beans (per pound)Quantity of Indonesian coffee beans supplied (pounds)$4.00-1,000, $3.50-2,500, $3.00-4,000, $2.50- 5,000, $2.00-7,000
Now suppose that China enters the market for Indonesian Coffee beans.
With the Indonesian coffee growers selling to both the Chinese and the Indonesians, what price will be paid by Indonesian consumers?
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