Suppose the Jamaican Government Sets Coffee Prices at $1 Per

Multiple Choice

Suppose the Jamaican government sets coffee prices at $1 per pound, when the market price is $10. The government's actions will:

A) improve efficiency, since the low prices will force producers to find cheaper production methods.
B) result in coffee surpluses even in a coffee-rich country.
C) cause coffee shortages even in a coffee-rich country.
D) improve equality between rich and poor, since the poor can now afford coffee.