The Ministry of health publishes a study finding that coffee drinking reduces the probability of getting cancer.  How do you imagine this will affect the market for coffee? Why?  Which determinant of demand or supply is being affected? Explain. Show graphically the changes in demand or supply.  Will this change the equilibrium price and quantity of coffee? Explain your reasoning.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Scenario 2: The Ministry of health publishes a study finding that coffee drinking reduces the probability of getting cancer. 

  1. How do you imagine this will affect the market for coffee? Why? 
  2. Which determinant of demand or supply is being affected? Explain.
  3. Show graphically the changes in demand or supply. 
  4. Will this change the equilibrium price and quantity of coffee? Explain your reasoning.
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