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Question
On January 30, 2012, Starbucks India announced plans to open 50 cafs. What would you expect to happen to the market for coffee in India, assuming all other factors are held constant?
a. The demand for coffee will increase in India.
b. The demand for coffee will decrease in India.
c. Both the supply and demand for coffee will increase in India.
d. The supply for coffee will increase in India.
e. The supply for coffee will decrease in India.
Answer
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Related questions
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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