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Consider the market for coffee beans. Suppose that the prices of all other caffeinated beverages go up 30 percent while at the same time a new fertilizer boosts production at coffee plantations dramatically. Can you tell what will happen to the equilibrium price? What about the equilibrium quantity?
A. Both the equilibrium price and the quantity will rise.
B. The equilibrium price will rise but the equilibrium quantity will fall.
C. The equilibrium price may rise or fall but the equilibrium quantity will rise for certain.
D. Neither the price change nor the quantity change can be determined for certain.
E. None of the above.
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