The freeze which destroyed a good portion of the South American coffee crop in the mid-1970s increased the price of tea. Explain
, using supply and demand diagrams.
1 answer:
Answer:
attached diagrams
Explanation:
As the freeze decrease teh output of coffee the supply decreased heavily. This make the price of coffee go up which decreased demand. This makes consumer move to substitute goods like tea making increase their demand. This ended with a greater price of both, coffee and tea.
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