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1. Discuss the specific factors that might affect the demand and supply of coffee for Dreams...

1. Discuss the specific factors that might affect the demand and supply of coffee for Dreams Café.

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      The supply of coffee will rise, if the input cost of production of coffee decreases, if the price of coffee increases, then its supply will rise. If the government provides subsidy on the production of coffee its supply will rise, again if the weather condition is preferable for coffee drinking , then its supply will rise. If there is a technological improvement then the supply will rise.

      If the price of coffee decreases then its demand will rise, if the price of its substitute like tea rises then the demand for coffee rises. If the taste and preference of the consumer changes then the demand will rise. If the price of the complementary good decreases then its demand will rise. If the population increases then the demand will rise.

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