In the Treaty of Versailles, Germany lost territory, was forced to pay huge reparations (payments by a defeated country for the destruction it caused in a war), was forced to take responsibility for the war through the War Guilt clause, and forced to demilitarize or greatly reduce their military.
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Answer:
A). It will decrease - 'the quantity of coffee demanded.'
B). It will increase - 'the quantity of coffee supplied by producers'
Explanation:
'Binding price floor' is demonstrated as the price greater than the equilibrium price set by the government to ensure that the prices of such products do not fall below a specific limit.
As per this definition, <u>the quantity of coffee demanded by the consumers will decrease while the quantity supplied(by producers) will increase if the binding price remains constant for several years</u>. This situation of decrease in the quantity demanded(due to hike in prices which is artificially made by the government) while an increase in quantity supplied(due to people reducing purchases as a consequence of hike in prices) which helps ensure a surplus in that good i.e. 'coffee' here.
