Question 1:

Suppose that Norway produces no coffee and Norwegians consume a trivial fraction of the world supply. As a result

1. the demand curve for coffee by Norwegians and the supply curve of coffee in Norway are identical horizontal lines.

2. the demand curve by Norwegians for coffee is a horizontal line.

3. the supply curve of coffee to Norwegian consumers is a horizontal line.

4. none of the above are true.

Choose the option that yields the correct answer.