Question

Suppose that coffee growers sell 200 million pounds of coffee beans at $2 per pound in 2015 and 240 million pounds for $3 per pound in 2016. Based on this information, we can conclude that the:______.a. law of supply has been violated. b. law of demand has been violated. c. demand for coffee beans has increased. d. supply of coffee beans has increased.

Answer 1

Answer: C) the demand for coffee beans has increased

Explanation:

The law of supply states that: "all things being equal" the higher the price the higher the quantity supplied and the lower the price, the lower the quantity supplied.

Coffee growers sold just 200 million pounds of coffee when the price was $2 per pound but they increased their supply of coffee to 240 million pounds when the price per pound is $3.

This is an evidence to show that suppliers supply more products when price increase in order for them to make more profits.