Question

Good weather in central and south america increases the supply of coffee beans by 25%. This can be expected to cause _______ in the price of coffee due to a shift of the _____ curve.

Answer 1

A reduction

Supply

Step-by-step explanation:

If there's an increase in the supply of coffee beans which is an input in the production of coffee, the production and supply of coffee would increase. This would lead to a rightward shift of the supply curve. If the supply curve shifts to the right and demand is assumed to remain unchanged, price would fall and quantity would increase.

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