Suppose that the market for coffee is in equilibrium at a price of $9.50 per pound and a monthly quantity of 20 million pounds. News of a drought in Brazil arrives so that people know that the supply of coffee months from now will be sharply reduced
What, if anything, will happen in the coffee market now? Explain.
The expectations of reduced supplies and higher prices in the future will cause current demand to increase and the market clearing price to rise.
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A firm's demand for labor depends on the
A) nominal wage rate because it pays workers in dollars. B) real wage rate, which equals the nominal wage divided by the price level. C) real wage rate, which equals the nominal wage divided by the hours worked. D) nominal wage rate, which equals the real wage divided by the price level. E) supply of labor.
When you duplicate yourself through other people your security is not dependent on your ability to perform.
A. True B. False
If the banking system has a required reserve ratio of 25 percent, the money multiplier is
A. 0.25. B. 1.25. C. 0.2. D. 4.0.
The labor-force participation rate equals the percentage of the labor force that is either employed or unemployed
a. True b. False Indicate whether the statement is true or false