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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?
Wiki User
∙ 13y ago
If the wages of coffee-bean pickers fell, coffee-bean companies would be able to hire more of them, because they could afford it. More workers can produce more coffee-beans, so supply increases.
In this problem, it is implied that tea is a substitute good for coffee. If the price of tea fell, but the price of coffee stayed the same, people would switch to tea, to save a couple bucks. Demand for tea goes up, demand for coffee goes down.
Wiki User
∙ 13y ago
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A good is inelastic if after a 1% increase in price the quantity demanded falls by less than 1%. Essentials such as petrol tend to be inelastic as do addictive products such as cigarettes.
How much did a cup of coffee cost in 1920?
The average cup of coffee cost 5 cents in 1920. Today, that same cup of coffee may cost as much as two dollars.
Why does fair trade coffee cost more?
Fair Trade is supposed to pay fairer prices to individual growers, improving the economy in the (usually impoverished) regions where coffee is grown, passing that extra cost off to consumers. Tim Harford, an economist and a coffee lover, writes in his lovely book "The Undercover Economist", that fair trade coffee is often used as a means to allow coffee vendors to get customers to pay a higher price for their coffee. Branding coffee as "fair trade" allows them, while indeed paying a little more to the growers, to get a much higher price for a similar cup of coffee. Please see the related links for details.
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the amount of coffee banter being dished out
Is coffee an inferior good?
no
How does supply affect the prices firms charge for goods to consumers?
Change in either demand or supply will cause change in both price and quantity. Suppose people started seeing this headline everywhere: “Medical researchers discover that drinking coffee has immediate health benefits.” What do you expect would happen to the price and quantity of coffee that is exchanged in the market? The news might alter consumer tastes for coffee and lead to an increase in the demand for the drink. As demand increases, the quantity that consumers are willing and able to purchase at every price increases. Because coffee is relatively scarce and its producers face increasing marginal cost, the equilibrium price and quantity of coffee will rise in response to the increased demand.
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Does coffee beans grow in Uganda?
Uganda produces the second largest quantity of coffee beans in Africa, including some of the highest quality.
How many ounces of coffee beans will yield 34 ounces ground coffee?
If you are just grinding them, you are not changing the quantity. So 34 ounces of beans will give 34 ounces of ground coffee.
What is the body reaction directly after drinking coffee?
The body's reaction directly after drinking coffee depends on the strength and quantity of coffee consumed. For example, a double espresso shot could cause the heart to beat faster.
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20' Shipping Container - Coffee - Standard Shipping Quantity. Holds 250 bags of coffee - each bag weighs 132lbs - Total 37,500 lbs
Would you add cream to your coffee before or after talking on the phone to keep it the warmest?
After, I think because the cream is cold and if you add coldness to the coffee it will reach an equilibrium and the overall temperature of the coffee will slightly decrease. Also don't leave your metal spoon in it because it is a conductor and the thermal energy in the coffee will be transfered to the spoon, therefore the coffee will cool.
What are crops grown in Dominican Republic?
Sugar, Coffee, Cocoa, Tobacco, Banana (of course), Others in lesser quantity.
If the tea harvest is bad in a particular year what will happen in the market for coffee Substitute for tea?
Increase price and decreased quantity
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The water molecules lose energy and move more slowly. Some of this energy is transferred to the cup and some of the energy is transferred to the air. The temperature of the water will eventually reach equilibrium with the environment.
What country is the worlds biggest coffee exporter?
Brazil is the world's lesing coffee producer ion terms of quantity, crankiing out morethan one third of the world's coffee in total.
How do you avoid drowsiness due to Valium taken in large quantity?
dont drink ....no grapefruit none.....water helps for me...coffee but that just be me...
