Fair trade coffee is a movement designed to increase the price coffee growers in developing countries receive for their output.Retailers such as supermarkets and coffee shops charge their customers extra for either brewed coffee or coffee beans,promising to remit the additional charge to coffee growers in developing countries.
a)Assuming entry costs for growing coffee are sufficiently low,which presumably they are,explain why the fair trade coffee program is not likely to benefit the growers,notwithstanding coffee retailers' promises to do so.
b)Who would you predict benefits most from the fair trade subsidy that seeks to improve the living standards of coffee growers?

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The Answer of Fair trade coffee is a movement designed to increase the price coffee growers in developing countries receive for their output.Retailers such as supermarkets and coffee shops charge their customers extra for either brewed coffee or coffee beans,promising to remit the additional charge to coffee growers in developing countries.
a)Assuming entry costs for growing coffee are sufficiently low,which presumably they are,explain why the fair trade coffee program is not likely to benefit the growers,notwithstanding coffee retailers' promises to do so.
b)Who would you predict benefits most from the fair trade subsidy that seeks to improve the living standards of coffee growers?

Fair Trade Coffee Is a Movement Designed to Increase the Price