A country that produces and consumes a large amount of coffee comparatively has just entered the world market. If the country becomes a net-exporter of coffee, we would expect that the world _______ curve will shift to the _______ more than the world _______ curve.

Question

Quizplus · Accepted Answer

When a country becomes a net exporter of coffee, it increases the total amount of coffee available in the world market, shifting the world supply curve to the right. The change in the world demand curve would be less significant because the country was already consuming a large amount of coffee domestically.

A Country That Produces and Consumes a Large Amount of Coffee