Economics · May / June 2019 · Paper 11 · Question 6
A newspaper reported that 'The world market for coffee has returned to equilibrium'. Which situation supports this statement?
- AA sequence of poor harvests resulted in shortages.
- BDecreased transport costs led to a surplus of supply.
- CFarmers matched demand by planting more coffee bushes.
- DThe price of coffee was fixed between producers.
As printed in the paper
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Correct answer: C. Farmers matched demand by planting more coffee bushes.
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