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Good weather in central and south america increases the supply of coffee beans by 25%. This can be expected to cause _______ in the price of coffee due to a shift of the _____ curve.

User Celebes
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1 Answer

7 votes

Answer:

A reduction

Supply

Step-by-step explanation:

If there's an increase in the supply of coffee beans which is an input in the production of coffee, the production and supply of coffee would increase. This would lead to a rightward shift of the supply curve. If the supply curve shifts to the right and demand is assumed to remain unchanged, price would fall and quantity would increase.

I hope my answer helps you

Good weather in central and south america increases the supply of coffee beans by-example-1
User Andrey Rudenko
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