Question: Question content area top Part 1 We observe a fallfall in the price of coffeecoffee and an increasean increase in the quantity of coffeecoffee that
Question content area top
Part
We observe a fallfall in the price of coffeecoffee and an increasean increase in the quantity of coffeecoffee that producers sell.
What is the most likely explanation?
Question content area bottom
Part
The most likely explanation is that
A
the law of supply applies to coffeecoffee but some other influence on selling plans increasedincreased the supply of coffeecoffee.
Bfirms should produce less coffee
firms should produce less coffeefirms should produce less coffee
Cit is unprofitable to produce coffee
it is unprofitable to produce coffeeit is unprofitable to produce coffee
Dthe law of supply does not apply to coffee
the law of supply does not apply to coffeethe law of supply does not apply to coffee
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