1. A severe frost destroys much of the Brazilian crop.

Based on the situation the demand curve for the coffee will shift to the right, because
even the frost destroy the market will still demand for their needs which is coffee. In
this case the supply curve will shift towards the left, because when the frost destroy
their will be less resources to produce the product.








2. Coffee is shown to cause cancer in laboratory experiments on mice.
However, coffee cause cancer but still the demand curve for the coffee will shift
towards right. Therefore the supply curve will shift towards left, because the consumer
will demand for it highly when the producer start to produce less quantity of the coffee
product due to the laboratory experiment.



P
r
i
c
e

quantity demanded
Y-Values
D
D
D
S

S1
D1
S1
S1
S
D1
D1








3. The price of tea declines sharply in production/consumption.
Based on the situation the demand curve for Tea will shift towards the right because
consumer started to buy more tea due to changes in the price for example more
cheaper the price of the products the more the consumer will demand for it and the
supply curve will shift towards left due to changes in price also when the price of the
products goes down producer will produce less.









4. Coffee prices are expected to rise rapidly in the next few months. Indicate the immediate effect.
Based on the situation the Demand curve for coffee will shift towards right and the supply
curve will shift towards left because due to coffee price going up consumer will buy more
coffee so that the demand curve will shift towards right and supply curve shift towards left
because the producer will start to produce less when consumer highly demand for the
product so that he can produce more when the price of product goes up to earn profit for
their firm.












5. Workers in the coffee industry form a trade union and succeed with claims for higher wages.
Based on the situation the demand curve will shift towards right and supply curve will shift
towards left because when the coffee industry have to pay high wages for the worker they
will try to reduce amount of workers by produce less products when this thing happens the
consumers will start to demand for more coffee so that demand curve for coffee industry
shift towards right and supply curve shift towards left.