Question

Use micro knowledge to answer plz;

Use market diagrams and describe what happens to price and quantity in the market
for short and long term coffee. (Analyze each event separately)
a) New findings show that coffee prevents diabetes
b) Consumer incomes are rising
c) Tax is introduced on coffee in most countries where coffee consumption is high
You can describe in words if you have difficulty drawing the diagrams. Then tell step by step what
which happens with the "curves" as well as price and quantity.
Do not forget to explain what reason behind changes in the position of the curves!

Answer 1