Suppose there is a decrease in the global supply of coffee, resulting in an increase in the global price of coffee. All other things held constant, the likely impact on the global market coffee creamer is:

Question

Quizplus · Accepted Answer

When the global price of coffee increases due to a decrease in its supply, people may buy less coffee. Since creamer is often used with coffee, the demand for creamer would likely decrease as well, leading to a potential decrease in its global price.

Suppose There Is a Decrease in the Global Supply of Coffee