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Analyze the effect of Coffee market using the demand & supply diagrams for the given incidents.

Consider the effect on the coffee market with a demand and supply diagram when the following incidents occur. Treat each case separately.

(i) There is an increase in the price of milk and sugar, which are used as complementary products of coffee.

(ii) A severe strom has destroyed many coffee plants in the plantations.

Illustrate what will happen to the equilibrium price also quantity when incident (i) and (ii) occur simultaneously? Comment without drawing the diagrams.

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M922870

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