What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell? a.Price would rise, and the effect on quantity would be ambiguous. b.Price would fall, and the effect on quantity would be ambiguous. c.Quantity would fall, and the effect on price would be ambiguous. d.Quantity would rise, and the effect on price would be ambiguous.

The impact of the changes:Wages of coffee-bean pickers fell: If the wages of coffee-bean pickers…

Answered: What would happen to the equilibrium…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

	a.	Price would rise, and the effect on quantity would be ambiguous.
	b.	Price would fall, and the effect on quantity would be ambiguous.
	c.	Quantity would fall, and the effect on price would be ambiguous.
	d.	Quantity would rise, and the effect on price would be ambiguous.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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