The main input into the production of Starbuck's coffee is imported coffee beans.If the dollar depreciates, how will this affect the U.S.retail coffee market?
A)Input prices will fall and supply will decrease.
B)Input prices will fall and supply will increase.
C)Input prices will rise and supply will decrease.
D)Input prices will rise and supply will increase.

Question

Quizplus · Accepted Answer

When the dollar depreciates, the cost of importing goods, including coffee beans, increases because more dollars are needed to purchase the same amount of foreign currency. This leads to higher input costs for companies like Starbucks, which in turn may reduce the supply of coffee in the U.S. retail market as it becomes more expensive to produce.

The Main Input into the Production of Starbuck's Coffee Is