Assume coffee is a substitute for tea.Suppose the tea harvest is bad this year.What may happen in the coffee market?

Question

Quizplus · Accepted Answer

If the tea harvest is bad and the supply of tea decreases, the demand for tea will rise, and as coffee is a substitute for tea, consumers who cannot find enough tea may start buying more coffee. This will increase the demand for coffee and could lead to an increase in its price. Therefore, the demand for coffee may increase.

Assume Coffee Is a Substitute for Tea