A key skill in economics is the ability to use the theory of supply and demand to analyse
specific markets. Analyse the effects of several ?shocks? to the market for coffee.
Answer all parts of each of the scenarios below.
Scenario 1: Suppose that, as part of an international trade agreement, the Indian
government reduces the tariff on imported coffee. Will this affect the supply or the
demand for coffee? Why? Show graphically with before- and after-curves on the same