-The figure above shows the market for coffee. If more coffee plantations are planted in Brazil and Vietnam so that the supply of coffee increases, the efficient quantity of coffee will ________ and the consumer surplus will ________.
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase

Question

-The figure above shows the market for coffee. If more coffee plantations are planted in Brazil and Vietnam so that the supply of coffee increases, the efficient quantity of coffee will ________ and the consumer surplus will ________.
A) increase; increase 
B) increase; decrease 
C) decrease; decrease 
D) decrease; increase

Quizplus · Accepted Answer

When the supply of coffee increases, the efficient quantity of coffee will increase because more coffee is available at a lower price. As a result, consumer surplus will also increase because consumers can purchase more coffee at a lower price, leading to greater overall satisfaction.

-The Figure Above Shows the Market for Coffee