Answer to Question #73601 in Other Economics for visha
Suppose the market for coffee is currently in equilibrium at price RM3.00. An early frost in coffee-growing nations decreases the supply of coffee. Use supply and demand analysis to forecast the impact of freeze on the market equilibrium price and quantity of coffee.
As a result of frost and subsequent shortage of coffee supply, quantity of coffee will be decreased and market equilibrium price for it will go up.