Question
Graph the following situation for the coffee market in Ethiopia:
• Initially at the first equilibrium P=$20 and Q=30
• Incomes increase
• The price of fertilizer (input) for growing coffee increases
Question:
After the shifts what happened to equilibrium price and quantity in the coffee market?
• Initially at the first equilibrium P=$20 and Q=30
• Incomes increase
• The price of fertilizer (input) for growing coffee increases
Question:
After the shifts what happened to equilibrium price and quantity in the coffee market?
A The equilibrium quantity increased, but we can’t tell what happened to the equilibrium price because we aren’t given any information about the relative size of the shifts in supply and demand in the market.
B The equilibrium price increased, but we can’t tell what happened to the equilibrium quantity because we aren’t given any information about the relative size of the shifts in supply and demand in the market.
C The equilibrium price decreased, but we can’t tell what happened to the equilibrium quantity because we aren’t given any information about the relative size of the shifts in supply and demand in the market.
D The equilibrium quantity decreased, but we can’t tell what happened to the equilibrium price because we aren’t given any information about the relative size of the shifts in supply and demand in the market.
This question is taken from Econ 101 – Microeconomics » Fall 2019 » iVat Chapter 5
