(a)[2]
Describe the general movement in coffee prices from 2007 to 2012 and identify one year when supply was likely to have been greater than demand in the coffee market.
(b)[4]
Explain how coffee exports and a thriving tourism sector would affect Nepal’s current account in the balance of payments.
(c)[2]
With reference to Extract 2, explain how you would classify coffee using the concept of income elasticity of demand.
(d)[6]
Using diagrams, explain how changes in demand and supply have affected the coffee market in Colombia and in Nepal.
(e)[6]
Discuss the view that Nepal should specialise in the production of coffee and Colombia should specialise in some other product given the changes in costs that have occurred.