Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S21GROUP2 en-us 2016-04-06 00:35:11 UTC 2025-11-10 18:41:48 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S21GROUP2/wish/104258865 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S21GROUP2/wish/104258865 News Article lee_xueting https://padlet.com/lee_xueting/16S21GROUP2/wish/104258866 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S21GROUP2/wish/104258866 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S21GROUP2/wish/104258867 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S21GROUP2/wish/104258867 Group name: lee_xueting https://padlet.com/lee_xueting/16S21GROUP2/wish/104258868 Please write out the names of the members in the group.
1. Jun Lin
2. In Soo
3. Yoshiki
4.Xavier
5. Hari]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S21GROUP2/wish/104258868 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S21GROUP2/wish/104258870 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/16S21GROUP2/wish/104258870 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S21GROUP2/wish/104258871 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/16S21GROUP2/wish/104258871 Introduction lee_xueting https://padlet.com/lee_xueting/16S21GROUP2/wish/104258872 Explain market mechanism:
Market mechanism works through the interaction of the market forces of demand and supply to determine the equilibrium price and output.

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

Define supply:
Supply is the amount of good that producers are able and willing 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/16S21GROUP2/wish/104258872 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S21GROUP2/wish/104258873 At the initial equilibrium, where D1 meets S1, the equilibrium is E1 and the price and quantity are P1 and Q1 respectively.]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S21GROUP2/wish/104258873 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/16S21GROUP2/wish/104258874 Supply factor: 
Rising costs for production of coffee beans. The second article states that "  To make matters worse for arabica growers, falling prices have been accompanied by rising costs: coffee is still largely picked by hand, and wages are rising fast in Brazil and Colombia. " As profits earned by farmers decrease, Total  revenue - total cost, assuming that total revenue remains constant, the farmers will produce lesser coffee beans as producing more does not benefit the farmers. This causes a shift of the supply curve towards the left direction, as supply of coffee beans decreases, ceteris paribus (GOOD WORK!!)

Demand factors:

1: Fall in price of related goods
The second article states that "the reason is that production of... cheaper robusta beans in particular, is booming. Vietnam has gone from growing almost nothing a decade ago to producing 25m bags of robusta beans a year today. The result is an oversupply of coffee." Brazil produces mainly arabica coffee beans, and thus when other producers such as Vietnam produces cheaper robusta coffee beans, quantity demanded for robusta beans will rise, and thus demand for arabica coffee beans will fall, ceteris paribus. 

2: Fall in income due to a recession
The first article states that "the recession in Europe has hit demand and squeezed profits for roasters. These processors...have responded by blending cheaper robusta with arabica. As a result robusta prices have not fallen as fast as arabica." This shows that a fall in income has affected the demand for arabica coffee beans, as it is the more prestigious and expensive of the two. As such, since firms like Nestle and Kraft have increased their demand for robusta beans and decreased their demand for arabica coffee beans. Thus, the demand for arabica coffee beans has fallen as shown by a leftward shift of the demand curve on the graph representing the market for coffee beans in Brazil  

Mr Wong: (you can directly explain the factor which is a fall inY)  
"recession in Europe" --> fall in Y --> fall in PP --> assuming coffee beans is a normal good, fall in Y leads to fall in DD. DD curve shifts left, cp]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S21GROUP2/wish/104258874 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S21GROUP2/wish/104258875 The demand curve would shift towards the right while the supply curve would left.However the shift of the demand curve would shift greater than the supply curve as the prefernce and taste would have serve impact on the consumption of good compared to an increase in cost of input because if people still value the good the increase in price would be seen to be insignificant.

]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S21GROUP2/wish/104258875 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/16S21GROUP2/wish/104258876 Note: Please draw the diagram manually, take a photo and upload it by clicking the "video icon". 

The original demand and supply are at D1 and S1 respectively and has equilibrium price is at E1.There is a leftward shift in demand  from D1 to D2 and leftward shift in supply from S1 to S2. There will be a new equilibrium at E2.]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S21GROUP2/wish/104258876 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S21GROUP2/wish/104258877 At original price P1,  quantity supplied  is more than quantity demanded. Therefore, surplus occurs, causing a downward pressure on the price. As the price decreases, quantity demanded rises while quantity supplied falls until it reaches the new equilibrium at E2.


]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S21GROUP2/wish/104258877 Conclusion lee_xueting https://padlet.com/lee_xueting/16S21GROUP2/wish/104258878 Due to the rising cost of productions, fall in price of substitutes and also the fall in income due to a recession, the quantity demanded of coffee beans would fall and the quantity supplied would also fall. However, as the decrease in quantity demand is higher than the decrease in quantity supplied, the price of coffee beans would decrease as the surplus produced due to the excessive supply would cause an downwards pressure on the price . Hence the farmer would earn less profit as their total revenue would decrease while their total cost remains the same.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S21GROUP2/wish/104258878 Chat Box lee_xueting https://padlet.com/lee_xueting/16S21GROUP2/wish/104258879 Mr Wong: Guys pls start filling in the various segments.

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