Problem
1. Suppose that Brazil, the world's largest coffee producer, levied an export tax on coffee. Use supply and demand analysis to examine the impact of the tax on:
a. the price of coffee in the United States.
b. U.S. expenditures on coffee.
c. the revenue of Brazilian coffee growers. Do you think the Brazilian coffee growers would favor or oppose the tax? Explain.
2. What do you think will happen to the monopoly power of OPEC with time? Can you think of any policy alternatives that western nations might adopt to free themselves from the monopoly power of OPEC? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.