My last question before the test ^_^?

Question

Four students from your economics class are sitting in a local restaurant discussing the market for coffee.
Below are quotes from each of the four students. Which quote contains incorrect economic analysis?
a. John: \If Brazil is hit hard by such a severe freeze that half of its crop is wiped out, then the price
of coffee will probably rise."
b. Paul: \If the price of caffeinated soft drinks such as Mountain Dew went down, then consumer
demand for coffee would go down since they're substitutes for each other."
c. Erin:If coffee drinkers expect the price of coffee to rise next month, then current demand will go
up and lead to a price increase this month."
d. Amanda: \If the demand for coffee were to increase, then I would expect the price to rise, which
would then cause the demand to fall back down to its original position."
e. none of the above. All of the quotes contain correct economic analysis.

Answer 1

Weather caffeinated soft drinks and coffee are substitutes is debatable, but, if given as a fact, then the answer would be (e) All quotes contain correct economic analysis.

Answer 2

While one can quibble with each statement, all of the students are mostly right, so I would chose (e) on the exam.

As an example of a small error, look at Amanda's response: Is the demand increase permanent or temporary? If it's permanent, there might not be enough land to raise more coffee, so the price would stay higher than its original position.

Answer 3

i do never learn. If I learn, I fail, If i don't, I often fail in any case, why waste useful time if i understand i will fail in any case, haha? JK. i've got have been given a three.8 and that i'm reading the day i come across available's a attempt a week forward till the minute in the previous the exams given.

Answer 4

as far as i kno , i thnk paul is probably wrong...and , abt john's statement, the price of coffee may increase in brazil....

Answer 5

answer is (e)