Question

According to the law of supply and demand, when high winds in Hawaii damage the coffee plants, coffee will be

1. Scarce, resulting in increased prices
2. Abundant, leading to decreased prices
3. Stable, with no impact on prices
4. Fluctuating, causing uncertain price changes

Answer 1

According to the law of supply and demand, when high winds in Hawaii damage the coffee plants, coffee will be scarce, resulting in increased prices.

Step-by-step explanation:

According to the law of supply and demand, when high winds in Hawaii damage the coffee plants, coffee will be scarce, resulting in increased prices. This can be explained by the concept of shifts in supply and demand curves. When the coffee supply decreases due to damage to the coffee plants, the supply curve shifts to the left, resulting in a decrease in the quantity supplied and higher prices.