Assume that a recent drought in Brazil destroys half the world's coffee beans. If demand for coffee beans is downward sloping and supply is upward sloping, ceteris paribus, we would expect to observe: Group of answer choices An increase in equilibrium price and a decrease in equilibrium quantity. An increase in equilibrium price and an increase in equilibrium quantity. A decrease in equilibrium price and a decrease in equilibrium quantity. A decrease in equilibrium price and an increase in equilibrium quantity. None of the above

Assume that in the market for tea there is a downward sloping demand curve and an upward sloping supply curve. Suppose that drought occurs in Sri Lanka, the world’s major tea growing area. In addition, scientists in Australia discover that drinking tea can improve an individual’s health. In this situation in Australia we would expect:Group of answer choicesThe equilibrium price of tea to increase and equilibrium quantity may go up or down or remain the same.The equilibrium price of tea to decrease and equilibrium quantity may go up or down or remain the same.The equilibrium quantity of tea to increase and equilibrium price may go up or down or remain the same.The equilibrium quantity of tea to decrease and equilibrium price may go up or down or remain the same.None of the above

When a demand curve shifts to the rightMultiple Choicedemand has increased, so equilibrium price increases, and equilibrium quantity increases.demand has decreased, so equilibrium price decreases, and equilibrium quantity decreases.demand has increased, so supply also shifts to the right, and the equilibrium price increases.demand has decreased, so supply also shifts to the right, and the equilibrium price decreases.

When supply shifts to the right and demand stays constant, the equilibrium price ________ and the equilibrium quantity ________.Group of answer choicesincreases; decreasesdecreases; increasesincreases; increasesstays the same; increasesdecreases; decreases

If the demand for a product increases, then we would expect equilibrium priceGroup of answer choicesto increase and equilibrium quantity to decrease.to decrease and equilibrium quantity to increase.and equilibrium quantity both to increase.and equilibrium quantity both to decrease.

Suppose that Cocoa prices are increasing amid widespread flooding in some of the world’s main growing regions leading to increased input costs for chocolate producers. At the same time there is a fall in consumer income. Chocolate is a normal good.What will happen to the equilibrium price and quantity in the market for chocolates following these two events?Question 6AnswerA.Price will decrease; quantity will decrease.B.Price will increase; the effect on quantity is ambiguous.C.The effect on price is ambiguous; quantity will increase.D.Price will increase; quantity will decrease.E.The effect on price is ambiguous; quantity will decrease.