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Coffee Export Analysis and Trade Factors

The document is an economics exam question that provides a figure showing the domestic supply and demand curves for coffee in Country X. It asks the student to: 1) Explain how the market for coffee in Country X would be affected if the world price of coffee increased from Pw to a new higher level. 2) Discuss three reasons why the government of Country X may want to intervene in the coffee market. 3) Explain the impact on consumers and producers in Country X if the government imposed an export quota on coffee.

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13 views2 pages

Coffee Export Analysis and Trade Factors

The document is an economics exam question that provides a figure showing the domestic supply and demand curves for coffee in Country X. It asks the student to: 1) Explain how the market for coffee in Country X would be affected if the world price of coffee increased from Pw to a new higher level. 2) Discuss three reasons why the government of Country X may want to intervene in the coffee market. 3) Explain the impact on consumers and producers in Country X if the government imposed an export quota on coffee.

Uploaded by

dafer krishi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

–2– SPEC/3/ECONO/HP3/ENG/TZ0/XX

Answer all the questions. Answers must be written within the answer boxes provided.

1.
accounts for 20.2 % of its export earnings. Figure 1
Country X. Dd and Sd represent domestic demand and supply per year, in thousands of
kilograms (kg), while Pw is the world price in US dollars (US$) per kg.

Figure 1

4
Sd
Price (US$ per kg)

3
Pw

Dd

0
0 50 100 150 200 250 300
Quantity of coffee (thousands of kg)

(a) (i)

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(This question continues on the following page)

16EP02
–3– SPEC/3/ECONO/HP3/ENG/TZ0/XX

(Question 1 continued)

(ii)

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three reasons.

• Political changes abroad are expected to bring about trade protection.

(iii)

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(This question continues on the following page)

Turn over
16EP03

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