According to a news article on bloomberg.com, the demand for coffee is increasing as "millennials' seemingly unquenchable thirst for coffee is helping to push global demand to a record." At the same time, coffee crops in Brazil and Asia have been hampered by dry weather and droughts. The article notes that "consumption is rising as supplies are getting tighter." Source: Marvin G. Perez, "Coffee-Loving Millennials Push Demand to a Record," bloomberg.com, October 30, 2016. Use a demand and supply graph of the coffee market to illustrate how the equilibrium quantity of coffee can increase as a result of these events. Be sure that all curves on your graphs are properly labeled, that you show any shifts in those curves, and that you indicate the initial and final equilibrium points. 1.) Using the line drawing tool, graph the effect of the growth in millennial demand for coffee by drawing a new demand curve. Label your curve 'D₂. 2.) Using the line drawing tool, graph the effect of dry weather and droughts on coffee crops by drawing a new supply curve. Label your curve 'S₂. 3.) Using the point drawing tool, indicate the new market equilibrium, showing the equilibrium quantity of coffee increasing Label your point ₂ Carefully follow the instructions above and only draw the required objects. P. Price (11.66,0) Q₁ D₁ Quantity of coffee Q C
According to a news article on bloomberg.com, the demand for coffee is increasing as "millennials' seemingly unquenchable thirst for coffee is helping to push global demand to a record." At the same time, coffee crops in Brazil and Asia have been hampered by dry weather and droughts. The article notes that "consumption is rising as supplies are getting tighter." Source: Marvin G. Perez, "Coffee-Loving Millennials Push Demand to a Record," bloomberg.com, October 30, 2016. Use a demand and supply graph of the coffee market to illustrate how the equilibrium quantity of coffee can increase as a result of these events. Be sure that all curves on your graphs are properly labeled, that you show any shifts in those curves, and that you indicate the initial and final equilibrium points. 1.) Using the line drawing tool, graph the effect of the growth in millennial demand for coffee by drawing a new demand curve. Label your curve 'D₂. 2.) Using the line drawing tool, graph the effect of dry weather and droughts on coffee crops by drawing a new supply curve. Label your curve 'S₂. 3.) Using the point drawing tool, indicate the new market equilibrium, showing the equilibrium quantity of coffee increasing Label your point ₂ Carefully follow the instructions above and only draw the required objects. P. Price (11.66,0) Q₁ D₁ Quantity of coffee Q C
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:According to a news article on bloomberg.com, the demand for coffee is increasing as "millennials' seemingly unquenchable thirst for
coffee is helping to push global demand to a record." At the same time, coffee crops in Brazil and Asia have been hampered by dry
weather and droughts. The article notes that "consumption is rising as supplies are getting tighter."
Source: Marvin G. Perez, "Coffee-Loving Millennials Push Demand to a Record," bloomberg.com, October 30, 2016.
Use a demand and supply graph of the coffee market to illustrate how the equilibrium quantity of coffee can increase as a result of these
events. Be sure that all curves on your graphs are properly labeled, that you show any shifts in those curves, and that you indicate the
initial and final equilibrium points.
1.) Using the line drawing tool, graph the effect of the growth in millennial demand for coffee by drawing a new demand curve. Label your
curve 'D₂.'
2.) Using the line drawing tool, graph the effect of dry weather and droughts on coffee crops by drawing a new supply curve. Label your
curve 'S₂.'
3.) Using the point drawing tool, indicate the new market equilibrium, showing the equilibrium quantity of coffee increasing. Label your
point 'e₂-
Carefully follow the instructions above and only draw the required objects.
P
Price
(11.66,0)
Q₁
S₁
D₁
Quantity of coffee
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