A continuing, long-term, large decline in the demand for coffee will not cause the price of coffee to fall much over the years if

A) coffee is not scarce.
B) the demand for coffee is highly elastic.
C) the demand for coffee is highly inelastic.
D) the supply of coffee is highly elastic.
E) the supply of coffee is highly inelastic.

D

Economics

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The Illinois Central Railroad once asked the Illinois Commerce Commission for permission to increase its commuter rates by 20 percent. The railroad argued that declining revenues made this rate increase essential. Opponents of the rate increase contended

that the railroad's revenues would fall because of the rate hike. It can be concluded that: A. both groups felt that the demand was elastic but for different reasons. B. both groups felt that the demand was inelastic but for different reasons. C. the railroad felt that the demand for passenger service was inelastic and opponents of the rate increase felt it was elastic. D. the railroad felt that the demand for passenger service was elastic and opponents of the rate increase felt it was inelastic.

Economics

In a command system:

A. Self-interest motivates and commands each business firm's decisions and actions B. The head of each family decides what to do with the family's resources C. The government makes production and allocation decisions D. Market traders command what outputs are produced and how they are allocated

Economics