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We are considering the market for coffee. For each of the following scenarios, match it with the expected result. Question 28 options: New research determines
We are considering the market for coffee. For each of the following scenarios, match it with the expected result. Question 28 options: New research determines that coffee consumption provides valuable health benefits. The government subsidizes coffee growers. Consumer income rises (and coffee turns out to be a normal good). A much cheaper, much more efficient commercial coffee press is invented. A natural disaster destroys millions of dollars worth of coffee beans in Hawaii. The price of tea falls (remember, we are considering how this will affect the market for coffee). 1. Increase in supply 2. Decrease in supply 3. Increase in demand 4. Decrease in demand
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