Suppose the market for coffee is in equilibrium. Explain (using graphs) what would happen to the...

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Suppose the market for coffee is in equilibrium. Explain (using graphs) what would happen to the equilibrium price and equilibrium quantity of coffee in each of the following scenarios. Please place your final equilibrium effects on price and quantity in the SNoodle box below (ie. just say Equilibrium price increase/decreased etc and equilibrium quantity increased/decreased etc.). Be sure to put your graphical analysis on your scratch paper to be turned in. Credit will be given not only for the correct answers, but the correct graphical depiction Gie. label everything and indicate direction of shifts). What happens to the equilibrium price and quantity if there is an expectation of higher future prices for coffee on the part of consumers and there is an increase in the number of coffee producers?

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Answer 1

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