Explain how the following will affect the supply curve of coffee
a) A fall in the wages paid to coffee workers
b) An increase in the availability of high-yielding coffee plants
c) A decrease in the quantity of land under coffee cultivation
What will be an ideal response?
a) A fall in wages paid to workers will shift the supply curve of coffee to the right. This implies an increase in the supply of coffee.
b) An increase in the availability of high-yielding coffee plants will shift the supply curve of coffee to the right. This implies an increase in the supply of coffee.
c) A decrease in the quantity of land under coffee cultivation will shift the supply curve of coffee to the left. This implies a decrease in the supply of coffee.
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According to Douglass North's "market opportunity response" model, surges in land sales in the Old Northwest in the 1810s, 1830s and 1850s were due to
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a. Both firms will earn 0 b. Firm A will earn 50 and firm B will earn -10 c. Firm A will earn -10 and firm B will earn 50 d. Both firms will earn 25
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a. make open market purchases and raise the reserve requirement ratio b. make open market purchases and lower the reserve requirement ratio c. make open market sales and raise the reserve requirement ratio d. make open market sales and lower the reserve requirement ratio