Consider a market for coffee that is initially in equilibrium. If tea harvest is bad in a particular year, then identify the most likely impact on the equilibrium price and quantity of coffee.
a. ?The price of coffee will decrease while the quantity of coffee will increase.
b. ?There will be no impact on the equilibrium price and quantity of coffee.
c. ?The price of coffee will increase, while the quantity of coffee will decrease.
d. ?Both the price and the quantity of coffee will increase.
e. ?Both the price and the quantity of coffee will decrease
Ans: d. ?Both the price and the quantity of coffee will increase.
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