Answer to Question #83788 in Microeconomics for kwabena

Question #83788
if the price of tea declines how would it affect the equilibrim price and quantity for coffee
1
Expert's answer
2018-12-17T06:52:10-0500

The reduction of the price of tea is a result of the increase in supply and a decrease in demand. Thus, the equilibrium price of coffee will increase. An increase in demand for coffee will increase the price and in turn reduce the supply.

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