Question

The federal government released a report that says drinking coffee will make you smarter, at the same time fewer Central American are growing coffee beans. How will this situation look graphically?​

Answer 1

graph 7

Step-by-step explanation:

As a result of the government's decree, there would be an increase in the demand for coffee. This would lead to a rightward shift of the demand curve. As a result, equilibrium price and quantity increases.

If fewer Central American are growing coffee beans, there would be a decrease in the supply of coffee. This would lead to a leftward shift of the supply curve. As a result, equilibrium price increases and quantity decreases.

Taking these two effects together, equilibrium price increases and there is an indeterminate effect on quantity