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Case 2-2 Changes in Demand and Supply and Coffe Prices PDF
Case 2-2 Changes in Demand and Supply and Coffe Prices PDF
FIGURE 2-8 Demand, Supply, and Coffee Prices Curves D and S refer, respectively,
to the world's demand and supply curves for coffee. Curves D and S intersect at point E,
giving the equilibrium price of coffee of $1.00 p e r pound and the equilibrium quantity of
10 billion pounds per year. If D and S shifted, respectively, t o D' t o Sf, t h e new equilibrium
point would b e E". giving the price of $0.50 per pound and the quantity of 15 million
pounds per year.
Source: "Drou-ningin Cheap Coffee," The Econornisr (September 29, 2001). pp. 43-34; "Crisis Call to Coffee Growers." Finutlcia/
Times (April 16. 2002). p. 23; "Price of Coffec Jumps to 10-Year High." Finuncial Times (October 15,2007), p. 18; "Coffee Prices
; Stirred by Shortage". Financial Tinles (May 11.2009), p. 13: and http:Ncoffeeasean.org/details.asp?Ohject=2I12463&News-ID=1755120
(December 2010).
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