Economics 0455 · IGCSE · Price determination

Price determination — practice question

A newspaper stated that ‘The world market for coffee has returned to equilibrium’. Which situation would support this claim?

  • AA sequence of poor harvests resulted in shortages.
  • BDecreased transport costs led to a surplus of supply.
  • CFarmers matched demand by planting more coffee bushes.
  • DThe price of coffee was fixed between producers.

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