Suppose the market for coffee is initially in equilibrium. If the tea harvest is bad in a particular year, then identify the most likely impact on the equilibrium price and quantity of coffee.
A) The equilibrium price of coffee will increase, and the equilibrium quantity of coffee will decrease.
B) Both the equilibrium price and the equilibrium quantity of coffee will increase.
C) The equilibrium price of coffee will decrease, and the equilibrium quantity of coffee will increase.
D) Both the equilibrium price and the equilibrium quantity of coffee will decrease.
E) There will be no impact on the equilibrium price and quantity of coffee.
Correct Answer:
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