The diagram illustrates the coffee market in a small coffee-producing country. Domestic supply is Sd. Initially, the import supply curve was Sm1. A poor harvest that affects only other coffee-producing countries moves the import supply curve to Sm2. In what way will consumption and imports change as a result of the supply shift?
- AConsumption falls by VW and imports fall to OT.
- BConsumption falls by VW and imports fall to zero.
- CConsumption is unchanged and imports fall to OT.
- DConsumption is unchanged and imports fall to zero.