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On January 30, 2012, Starbucks India announced plans to open 50 cafés. What would you expect to happen to the market for coffee in India, assuming all other factors are held constant?

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5 votes

Answer:

On January 30, 2012, Starbucks India announced plans to open 50 cafés. What would you expect to happen to the market for coffee in India, assuming all other factors are held constant?

Without mincing words, this would create competition among companies that produces cafes which would crash the price or enables the price to vary and thus; increases the demand for the product.

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