Question

Suppose that coffee growers sell 200 million pounds of coffee beans at $2 per pound in 2015 and 240 million pounds for $3 per pound in 2016. Based on this information, we can conclude that the:______.a. law of supply has been violated. b. law of demand has been violated. c. demand for coffee beans has increased. d. supply of coffee beans has increased.

Answer 1

B and C

Step-by-step explanation:

The law of demand states that the higher the price, the lower the quantity demanded. This means that at a higher price, the quantity of coffee that should be demanded should decrease.

Hence, since there was an increase in the price of the coffee per pound in 2016, we expect that there should be less sales. Instead, there was still an increase.

Also, we can see that the the demand for coffee has increased. More pounds of coffee is needed which creates an increase in supply which thus has driven up the price