The Ministry of health publishes a study finding that coffee drinking reduces the probability of getting cancer.  How do you imagine this will affect the market for coffee? Why?  Which determinant of demand or supply is being affected? Explain. Show graphically the changes in demand or supply.  Will this change the equilibrium price and quantity of coffee? Explain your reasoning.

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
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Scenario 2: The Ministry of health publishes a study finding that coffee drinking reduces the probability of getting cancer. 

  1. How do you imagine this will affect the market for coffee? Why? 
  2. Which determinant of demand or supply is being affected? Explain.
  3. Show graphically the changes in demand or supply. 
  4. Will this change the equilibrium price and quantity of coffee? Explain your reasoning.
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