A heavy rain season in Columbia, South America made it very difficult to grow coffee beans, as a result 25% less coffee beans were produced this growing season. What would be the resulting effect on the price of Columbian coffee?
Price would increase, due to a shortage of coffee beans
Price would decrease, due to a surplus of coffee beans
No change in price
Doctors at Harvard University release a report stating that drinking 8oz of green tea each day lowers the risk of cancer. What effect would this have on the price of green tea?
Price would increase, due to increase in demand of green tea
Price would decrease, due to increase in demand of green tea
No change in price
What happens to the price of product if the supply goes up, but demand stays the same?
Price would increase, due to a surplus
Price would decrease, due to a surplus
No change in price
The price at which supply equals demand is called the _____ price.
surplus
equilibrium
shortage
If the price being charged for a product is more than consumers feel it is worth, which of the following will occur?
Surplus
Shortage
Equilibrium
Scarcity
If the price being charged for a product is less than consumers feel it is worth, which of the following will occur?