Question

decision point: the effect of coffee bean prices
most of your coffee beans come from brazil, and the country has experienced a drought, causing the price of coffee beans to skyrocket. how do you think this will impact supply for moondogs coffee?
select an option from the choices below and click submit.

• supply likely will decrease.
• supply likely will increase.
• supply likely will remain unchanged.

Explanation:

In business (specifically economics), when the cost of an input (coffee beans) increases, production costs for the firm (Moondogs Coffee) rise. Higher input costs typically lead to a decrease in supply because it becomes less profitable or more expensive to produce the same quantity of the good (coffee). So the correct option is the one stating supply likely will decrease.

Answer:

1. Supply likely will decrease.