Assume That a Group of Countries That Produce 50 Percent

Multiple Choice

Assume that a group of countries that produce 50 percent of the world's coffee decide to limit their coffee production and exports to increase their income from the sale of coffee.Which of the following are necessary for this cartel to operate successfully?

A) The world demand for coffee should be price elastic and the supply of coffee by other coffee producers should be price inelastic.
B) The world demand for coffee and the supply of coffee by other producers should be price inelastic.
C) The world demand for coffee and supply of coffee by other coffee producers should be price elastic.
D) The world demand for coffee should be price inelastic and supply of coffee by other coffee producers should be price elastic.