Explain how the following will affect the supply curve of coffee. a)

Explain how the following will affect the supply curve of coffee.
a) A fall in the wages paid to coffee workers
b) An increase in the availability of high-yielding coffee plants
c) A decrease in the quantity of land under coffee cultivation

What will be an ideal response?

ANSWER

a) A fall in wages paid to workers will shift the supply curve of coffee to the right. This implies an increase in the supply of coffee.
b) An increase in the availability of high-yielding coffee plants will shift the supply curve of coffee to the right. This implies an increase in the supply of coffee.
c) A decrease in the quantity of land under coffee cultivation will shift the supply curve of coffee to the left. This implies a decrease in the supply of coffee.