Show the shortage of coffee beans in your graph

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Reference no: EM131387756

According to leading coffee merchants, there will be a shortage in the global coffee market due to Brazil’s declining coffee production in 2014-2015.62 Brazil is the world’s largest producer of coffee beans.

a. Using demand and supply analysis, illustrate the effect of Brazil’s declining coffee production on the global coffee market in 2014. Show the shortage of coffee beans in your graph

b. With the shortage, how would you expect the price of coffee beans to change in 2014?

c. Arabica coffee beans were being traded at seven-year lows in November 2013. If the demand for coffee beans decreases further in 2014, along with the change mentioned above, how would you expect the equilibrium price and quantity of Arabica coffee beans to change? Draw a graph to explain your answer.

Reference no: EM131387756

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