Figure 2.5.5
-Refer to Figure 2.5.5 above. The textbook attributes the changes in the price of coffee in New York to:
A) worldwide swings in coffee demand.
B) changes in income and preferences.
C) droughts in Brazil.
D) changes in speculative demand.

Question

Figure 2.5.5
-Refer to Figure 2.5.5 above. The textbook attributes the changes in the price of coffee in New York to:
A) worldwide swings in coffee demand. 
B) changes in income and preferences. 
C) droughts in Brazil. 
D) changes in speculative demand.

Quizplus · Accepted Answer

The correct answer is C) droughts in Brazil. This is because Brazil is a major producer of coffee, and droughts in the country can significantly affect the global supply of coffee, leading to changes in its price in markets such as New York.

Figure 2.5.5 -Refer to Figure 2.5.5 Above. the Textbook Attributes the Changes