Scenario 1: As part of an international trade agreement, the Oman government reduces the tax on imported coffee. Will this affect the supply or the demand for coffee? Why? Which determinant of demand...

Scenario 1: As part of an international trade agreement, the Oman government reduces the tax on imported coffee.

Will this affect the supply or the demand for coffee? Why?

Which determinant of demand or supply is being affected? Explain.

Show graphically the effect of changes in demand or supply.

How will this change the equilibrium price and quantity of coffee? Explain your reasoning.