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A Technological Improvement Lowers the Cost of Producing Coffee

Question 428

Multiple Choice

A technological improvement lowers the cost of producing coffee. At the same time, consumersʹ preferences for coffee increase. The equilibrium price of coffee will


A) fall.
B) remain the same.
C) rise.
D) rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves.

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