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Economics

3. A new study reveals that coffee can have a number of side effects including high blood pressure and an inexplicable desire to wear ugly sweaters (both bad). How would Joe's demand for baristas and the wages he paid them change after this study is published? (2 points)

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How would the joe's demand for baristas and the wages he paid them change

1. DEMAND FOR BARISTAS COFFEE REDUCED: After learning about the side effects of the coffee,joe will definitely avoid drinking coffee as nothing is more important than health for any person and similarly joe will also not risk his life by drinking coffee as it may cause high blood pressure and threat to the life as well , so ultimately the sales of the barista for joe will be minimised to a very big extent.

2. CHANGES IN WAGE: The wages may not be decreased to a very big extent as baristas does not only offer coffee, there are many other items available with the baristas, so joe can have desire for some other products as well and hence he is going to avoid only the coffee and not other items. And there are chances that joe may not completely stop drinking the coffee though he can minimise it , so  the wages will not be much impacted.