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Using supply and demand analysis, explain the impact of the frost on the price of coffee and the quantity of coffee demanded.

2007-02-11 07:22:51 · 2 answers · asked by FLICKA! 1 in Social Science Economics

2 answers

The devastating 1975 frost, in particular, was a boon to other coffee-growing countries. Two 1994 frosts raised prices worldwide.

2007-02-12 14:52:40 · answer #1 · answered by nonconformiststraightguy 6 · 0 0

well
the supply amount was lowered
lets say you had a 100 acres before the frost, after the frost you would only have 75 acres
yet you would still have the same amount of demand. so you have less coffee than before, but the same amount of demand. this affects the quantity demanded.
second, the price is going to go up because there is not as much coffee to sell, with a higher price, less people will buy, making the amt of coffee last longer

2007-02-11 15:31:55 · answer #2 · answered by loveisthemovement. 4 · 0 0

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