Macroeconomics 6th Edition by Robert Hall,Marc Lieberman

تمرين 3

Consider the following passage from an article in the New York Times on March 9, 2011, "In the last few years, coffee yields have plummeted here [Colombia] and in many of Latin America's other premier coffee regions as a result of rising temperatures and more intense and unpredictable rains, phenomena that many scientists link partly to global warming... [while] global demand is soaring as the rising middle classes of emerging economies like Brazil, India and China develop the coffee habit." Illustrate the impact of these events in a supply and demand diagram of the global market for coffee. Ceteris paribus , can we determine the direction of change in equilibrium quantity? Of equilibrium price? Explain briefly.