Quantity will fall and pricing will rise. According to the scenario, when coffee-bean pickers' wages rise, so will the equilibrium price of the beverage.
It lowers the equilibrium quantity and raises the equilibrium price of coffee. The cost of producing the good goes up when taxes are levied on commodities or services.
If coffee's price drops, the demand curve for tea would move to the left. Therefore, new equilibrium would signify a decrease in both equilibrium quantity and equilibrium price. Farmers produce more because the price is high, increasing the supply. However, the additional supply on the market causes price pressure during the subsequent periods of constant demand.
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