Answer:
Bad weather in Central America and South America reduces the coffee supply by 25%. This can be expected to cause a decrease in the price of coffee due to a shift in the supply curve.
Explanation:
The law of supply indicates that as the price of a given product or service goes up, suppliers want to provide more of this product, so the offered quantity goes up as well. Likewise, when the supply of a product, such as coffee, decreases, the price of that product tends to decrease.
The price movement happens due to the movement along the supply curve and, consequently, the quantity demanded will also change.
The supply curve is a graph showing the quantity supplied at each price.
