Assume that a hurricane in Brazil destroys half of the coffee crop. Considering that Brazil is a major coffee producing country, consumers expect the price of coffee to increase in the near future. How does this reflect on the demand for coffee?
a. There is a movement upward along the demand curve for coffee.
b. The demand curve for coffee shifts inward.
c. The demand curve for coffee shifts outward.
d. There is a movement downward along the demand curve for coffee.
e. The demand for coffee declines.
c
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Refer to Figure 15-17. An economics professor argues: "I think the course should be priced so as to achieve economic efficiency." How much profit (or loss) will the college make on the course if it charges this price?
A) -$2,592,000 B) -$1,080,000 C) $0 D) $450,000
Which of the following characteristics would describe a product with an elastic demand?
A. The good is considered a necessity and many substitutes for the product exist. B. The good is considered a necessity and few substitutes for the product exist. C. The good is considered a luxury and many substitutes for the product exist. D. The good is considered a luxury and few substitutes for the product exist.