Canadians consume millions of cups of Tim Horton's coffee each year. If Tim Horton's reduced the price per cup of coffee (because of a decrease in administration and transportation costs) , ceteris paribus, Canada's terms of trade will
A) improve as long as consumption of coffee decreases.
B) deteriorate.
C) not change.
D) improve.
E) deteriorate as long as consumption of coffee increases.
Correct Answer:
Verified
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