Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S07S15GROUP2 en-us 2016-04-06 00:52:22 UTC 2025-11-20 23:40:08 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260806 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260806 News Article lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260807 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260807 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260808 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260808 Group name: lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260809 Please write out the names of the members in the group.
1.Bryson
2.Bing Hong
3.Royston
4.Zi Rui (mc)
5.]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260809 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260810 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/16S07S15GROUP2/wish/104260810 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260811 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/16S07S15GROUP2/wish/104260811 Introduction lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260812 Explain market mechanism:
(royston)The market for coffee works through the interaction of the market forces of demand and supply to determine the equilibrium price and quantity of coffee 

Define demand: 
(royston)it refers to the quantity of coffee beans that consumers are willing to and able to consume in a given period of time at various prices. 


Define supply:
(royston) it refers to the quantity of coffee beans that the producers are willing and able to offer to sale in a given period of time at various prices 




]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260812 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260813 Initially,the market is in equilibrium at E1 at the intersection of demand(D1) and supply(S1).The initial equilibrium price and quantity is at P1 and Q1 respectively. (BH)]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260813 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/16S07S15GROUP2/wish/104260814 i) (Royston)Taste and preferences ''coffee is an affordable luxury for the middle class, the market is growing by around 5% a year. But these drinkers are filling their pots with cheaper robusta beans'' this shows that people are switching from Arabia coffee  (Brazil coffee) to cheaper coffee like robusta coffee causing demand for Arabia coffee
to fall, ceteris parisbus.

ii)(Royston)cost of production.(factor input) ''Coffee is a labour-intensive crop; picking is still largely done by hand. Wages in Brazil and Colombia are rising fast and production costs are above prices'' this shows that the price of input rises, causing production of Arabia coffee to be less profitable and hence supply decreases, ceteris paribus. 

iii)(BH)Availability of Substitutes
Recession has squeezed the profits of big food companies such as Nestlé and Kraft. They have taken to blending cheaper robusta beans with arabica into their products to maintain their margins.This causes the demand for arabica beans to fall, ceteris paribus.


Ms Lee: Please note the "leaf rust" affects the production of the finest coffee. but my context is on Arabica coffee ]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260814 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260815 (royston)The change in people preference of Robusta coffee over Arabia coffee and the increase in availability of substitutes results in a fall in demand shown by a leftward shift of the demand  curve from D1 to D2. At the same time, the increase in production cost leads to a fall in supply of Arabia coffee, represented by a leftward shift of the supply from s1 to s2. 
in this case, it is likely that the extent of the fall in demand is greater than that of the fall in supply. this is because the large bulk of people who used to drink arabia coffee are drinking robusta coffee resulting in a large drop in the demand for arabia coffee due to close substitute. 
((((((
Im not really sure how to write justification)))))
Ms Lee: justification not very strong]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260815 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/16S07S15GROUP2/wish/104260816 Note: Please draw the diagram manually, take a photo and upload it by clicking the "video icon". 

Where is ur explanation of the market adjustment process?
(so sorry,forgot about this part)

At original price P1,the quantity supplied exceeds the quantity demanded,leading to a surplus.Price is thus pushed downwards as sellers offer lower prices to get rid of their goods.As price falls,quantity demanded rise while quantity supplied falls.This process continues until the surplus is totally eliminated,where the market clears at new equilibrium E2.
(BH)]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260816 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260817 At new equilibrium E2, equilibrium price decreases from P1 to P2 and equilibrium quantity decrease from Q1 to Q2.(BH) ]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260817 Conclusion lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260818 The concurrent fall in supply and demand would reinforce each other to cause a sharper fall in equilibrium quantity.However,the effect of equilibrium price is indeterminate as it depends on the relative extent of changes in demand and supply.If extend of the fall in demand is less than the fall in supply,equilibrium price will rise.In this case,the fall in demand is greater than the fall in supply which cause the equilibrium price to fall.(BH)]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260818 Chat Box lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260819 Ms Lee: Hi]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S07S15GROUP2/wish/104260819