Practice_Midterm_1

5points1baccountforthepriceandquantitymovementsfromthe

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Unformatted text preview: rter
in
2005,
2006
and
2007.
 The
market
works
by
farmers
growing
coffee
beans
and
then
selling
them
on
the
open
 market
to
producers
who
roast,
package
and
market
the
ground
coffee.
The
global
 coffee
market
is
perfectly
competitive.
 
 You
are
managing
a
team
trying
to
work
out
how
responsive
the
demand
for
 unprocessed
coffee
is
to
price
changes.
During
your
research
you
find
out
the
 following:
 
 1. The
price
of
tea
doubled
in
the
third
quarter
of
2006
and
then
decreases
 sharply
in
the
fourth
quarter.
During
the
rest
of
2005/2006
the
price
of
tea
has
 been
constant.
 2. Disease
wiped
out
half
the
Brazilian
coffee
crop
in
the
first
quarter
of
2006.
It
 takes
two
years
for
crops
to
recover.
 3. African
growers’
yields
have
been
rising
steadily
in
recent
years
with
2005
 b...
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This document was uploaded on 03/09/2014 for the course BUS 01 at NYU.

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