Question

Which event could have caused the following?

Event #_ happens. As a result, the price of coffee increases with no change in the quantity of coffee sold.

Possible Events: 1 The price of coffee rises 2 The price of coffee falls 3 American Medical Association reports that drinking coffee causes cancer 4 American Medical Association reports that drinking coffee reduces cancer 5 Half of the coffee harvest turns out to be no good due to adverse weather conditions 16 Coffee harvests increase due to great weather conditions 7 Half of the coffee harvest turns out to be no good due to adverse weather conditions and the American Medical Association reports that drinking coffee causes cancer 8 Half of the coffee harvest turns out to be no good due to adverse weather conditions and the American Medical Association reports that drinking coffee reduces cancer 9 Coffee harvests increase due to great weather conditions and the American Medical Association reports that drinking coffee causes cancer 10 Coffee harvests increase due to great weather conditions and the American Medical Association reports that drinking coffee reduces cancer

Answer 1

Answer is event 8 .when the coffee harvest decreases ther will not be much left to increase the supply when the American Medical Association reports that drinking coffee reduces cancer.

When an information like this is shared with the people , obviously they will demand more of the product. This will increase the price.

But if the supply increases along with it , then the price will come down. Here , due to adverse weather the harvest is not good . So the supply will not be increased in accordance with the increase in the prices.