Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16A06GROUP4 en-us 2016-04-06 00:17:44 UTC 2023-01-22 13:59:30 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257016 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257016 News Article lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257017 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257017 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257018 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257018 Group name: lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257019 Please write out the names of the members in the group.
1.Sherritze
2.Shynn
3. Wei Ning
4.Zachary
5.]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257019 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257020 Objective - Students will be able to identify and explain how the demand and supply factors affect the market for coffee beans.]]> 2016-04-04 06:04:45 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257020 Welcome:) lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257021 Dear Students,

Welcome to Home-Based Learning 2016!

By now, you should have the list of the team members in your group. Each team will analyse 2 articles below to identify 3 evidence/information (2 Demand + 1 Supply or 2 Supply + 1 Demand factors)  to answer the following essay question:

a) With reference to the 2 news articles, explain the fall in prices of coffee beans in Brazil.

To discuss the answers with your group members, double click anywhere on the wall and a virtual "sticky note" will appear at the top. From, enter your name, then you can use the "sticky note" to "chat" with each other. 

For example, Miss Lee: I don't think that is a non-price factor that affects demand. Please remember to write your name before the statement :) 

Lastly, please identify these non-price determinants of demand & supply by quoting the relevant phrases from the article. 

For example, as stated in article 1, "the recession in Europe has hit demand". After quoting the evidence for the article please proceed to explain how this non-price factor affects demand or supply with economic rigour. 

I have provided some scaffolding statements to guide you in your essay development. Address each statement by writing the essay segment in the respective sticky note. Press the pencil button to write the respective essay segment.

]]> 2016-04-04 06:06:48 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257021 Introduction lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257022 Explain market mechanism:
It means the forces of demand and supply determine the prices and quantities of good and services offered for sale in a free market.

Define demand:
Demand is the amount of good that consumers are able and willing to purchase in a given period of time at various prices.

Define supply:
Supply refers to the amount of a good that producers are willing and able to offer for sale in a given period of time at various prices.]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257022 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257023 Initially, the market of coffee beans in Brazil is in equilibrium at the intersection of demand(D1) and supply (S1) at the equilibrium point E There is a steady demand and supply of  coffee beans in Brazil and there is an equilibrium quantity of coffee beans in the market. The equilibrium price of a product is determined by the demand and supply of the product. Since there is a decrease in demand for Arabica coffee beans and there is an oversupply of coffee beans in Brazil on already depressed prices, there would be shifts in both the demand and supply curve.]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257023 Body: Identify and explain whether the factor/event shifts the demand or supply curve. (2 Demand + 1 Supply or 2 Supply + 1 Demand) lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257024 Initially, the coffee market is in equilibrium at the intersection of demand (D1) and supply (S1), at equilibrium point E. Since Robusta coffee beans are becoming more popular in the middle-class population in China, and due to stronger demand for it in Vietnam and its cheap price, This factor can be identified as taste and preferences affecting the demand for Arabica beans .As demand for Robusta beans increases, people will switch to Robusta Beans causing the demand for Arabica beans to decrease, ceteris paribus. The demand curve for Arbica beans shifts left (D1 to D2).

Supply of coffee beans increases due to the lower costs of production. "Brazilian farmers invested heavily in new acreage and improved yields with better husbandry and more fertiliser", as such more crops are being produced at a better quality within the same time span. The amount of crops increases and the quality is better, allowing producers to sell more crops at a higher price. The profit margin for each good increases, thus producers are more willing and able to produce more coffee beans, increasing the quantity supplied, ceteris paribus. The supply curve thus shifts rightwards. (S0 to S1)

The supply of coffee beans also increases due to the "good weather in Brazil". This factor falls under weather and climate whereby the good weather boosts the crop yield of coffee beans. Coffee beans grow better under good weather conditions, thus the amount of coffee beans surviving is much greater. This leads to an increase in quantity supplied. Thus, attributing to the rightward shift in supply curve.]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257024 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257025 Due to the above factors mentioned, the lack of demand causes a leftward shift in demand curve (D0 to D1) and the oversupply led to a rightward shift in supply curve (S0 to S1). Supply curve shifts to a large degree due to the accumulated factors leading to a large amount of quantity supplied. Demand curve shifts to a large degree as well due to the continued decrease in demand from consumers turning to other alternatives.]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257025 Body: Using the market adjustment process, explain how the shift(s) changes the equilibrium price and quantity (Explanation of diagram): lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257026 Note: Please draw the diagram manually, take a photo and upload it by clicking the "video icon". 
At E0, the price of coffee bean is at equilibrium as supply of coffee beans met the demand of coffee beans. However, due to the shifts in supply curve and demand curve, the equilibrium prices change. Due to the lack of demand and continued increase in supply, at (Q0, S1), there is a surplus of coffee beans. This causes a downward pressure on the supply and demand curves, pushing down the equilibrium to (E1) where the new supply (S1) and new demand (D1) is equivalent. ]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257026 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257027 The new equilibrium price and quantity is now lower at E1 and Q1. ]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257027 Conclusion lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257028 In conclusion, the fall in prices of coffee beans in Brazil was firstly due to the recession in Europe resulting in major companies such as Nestle and Kraft opting to use Robusta beans so as to reduce the cost of production and maintain their profit margins. Secondly, there was an increase in supply of arabica beans due to good weather conditions, resulting in an oversupply of high grade beans that overshadowed the demand Thus resulting in a decrease in the price of arabica beans

]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257028 Chat Box lee_xueting https://padlet.com/lee_xueting/16A06GROUP4/wish/104257029 Weining: i did the intro already. idk if the intital equilibrium for the body is correct anot though
Shynn: i did supply definition i doing some of the body later
Shynn: I did one factor for demand affecting the demand for robusta beans and elaborated on the initial equilibrium. I can do some tmr only during the night
Zach: Errrr guyz didn't the article say there was a rise in the cost of production (Rise in labour cost/ wages)??? Pls correct me if im wrong 

]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16A06GROUP4/wish/104257029