3 Economics Assignment.

Instructions

Only provide your opinions when specifically called for. In all other cases your answer(s) should rely on the text and module materials and not on the internet, showing your capacity to apply the appropriate economic principles and concepts correctly.

A key skill in economics is the ability to use the theory of supply and demand to analyze specific markets. In this week’s discussion, you get a chance to demonstrate your ability to analyze the effects of several “shocks” to the market for coffee.

1: Suppose that the U.S. government reduces the tariff on imported coffee, and a reputable study is published indicating that coffee drinkers have lower rates of colon cancer. What will the combined impact be on the equilibrium price and quantity of coffee? Explain your reasoning and show graphically the impact of these effects. Make sure you think this through carefully! (Photos of your work or those created by hand are not acceptable!) If you need help with graphing see the tutorial in the section above the module Power Point.

Grading Rubric

Criteria	Not Evident       0%	Developing      55%	Proficient      80%	Distinguished       100%	Weight      %
Correctly recognizes       effect(s) on supply   and/or demand					30
Correctly recognizes   effect(s) on Equilibrium     price and quantity					30
Correctly graphs outcome					30
Articulation of response   (citations, grammar,   spelling, syntax, or   organization that   negatively impact   readability and   articulation of main   ideas.)					10