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Answer to Question #73601 in Economics for visha

Question #73601
Suppose the market for coffee is currently in equilibrium at price RM3.00. An early frost in coffee-growing nations decreases the supply of coffee. Use supply and demand analysis to forecast the impact of freeze on the market equilibrium price and quantity of coffee.
1
Expert's answer
2018-02-18T08:18:08-0500
As a result of frost and subsequent shortage of coffee supply, quantity of coffee will be decreased and market equilibrium price for it will go up.

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