Suppose a country, whose production and consumption of coffee is large relative to the world market, has just entered the global market. If the country is a net exporter of coffee, we would expect:

A. a decrease in world price, and increase in world quantity of coffee.
B. an increase in both world price and quantity of coffee.
C. an increase in world price and decrease in world quantity of coffee.
D. a decrease in both world price and quantity of coffee.


Answer: A

Economics

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