Question

Coffee and tea are substitutes. All else equal, what would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

Answer 1

Price would fall and the effect on quantity would be ambiguous.

Step-by-step explanation:

If the wages of coffee-bean picker fell, the price of coffee will also fall, though the effect on the quantity of coffee supply cannot be estimated.