Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S10GROUP3 en-us 2016-04-06 02:38:39 UTC 2025-10-25 17:27:25 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S10GROUP3/wish/104270243 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/104270243 News Article lee_xueting https://padlet.com/lee_xueting/16S10GROUP3/wish/104270244 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/104270244 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S10GROUP3/wish/104270245 The reason is that production of coffee, and 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.  In response to the high prices in 2011, many Brazilian and Colombian farmers invested to boost the production of arabica. In addition, the good weather in Brazil means that this year's crop has turned out to be unexpectedly large. This results in an oversupply of coffee.
The oversupply of coffee beans implies that there is a surplus which leads to producers lowering prices of coffee beans in an attempt to get rid of the excess stock , so there is a fall in prices of coffee beans in Brazil. ]]> 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/104270245 Group name: lee_xueting https://padlet.com/lee_xueting/16S10GROUP3/wish/104270246 Please write out the names of the members in the group.
1. Ho Xin Yi
2. Cheryl Gan
3. Patrina Chan
4. Soo Huilin
5. Weijing ]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/104270246 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S10GROUP3/wish/104270247 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/16S10GROUP3/wish/104270247 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S10GROUP3/wish/104270248 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/16S10GROUP3/wish/104270248 Introduction lee_xueting https://padlet.com/lee_xueting/16S10GROUP3/wish/104270249 Explain market mechanism: The market mechanism works through the interaction of the market forces of demand and supply to determine the equilibrium price and quantity of coffee beans in Brazil.


Define demand: Demand for coffee beans refers to the quantities of coffee beans that consumers are willing and able to purchase at different prices in a given period of time, ceteris paribus.


Define supply: Supply for coffee beans refers to the quantities of coffee beans that suppliers are willing and able to sell at different in a given period of time, ceteris paribus.




]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/104270249 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S10GROUP3/wish/104270250 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.]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/104270250 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/16S10GROUP3/wish/104270251 Demand:

There is an economic recession , thus there is a fall in consumer's income, resulting in a fall in their purchasing power. Also, Arabica beans are considered superior compared to Robusta beans and are luxury goods, fetching higher prices and hence leading to a decrease in demand for Arabica beans , ceteris paribus.

Robusta beans is a cheaper substitute for coffee and more people are choosing Robusta beans over Arabica beans. A substitute is a good that satisfy similar needs or desire within the same price range. Therefore, when the price of Arabica beans increases , holding all other factors constant ,the demand for Robusta beans will increase and leading to a decrease in quantity demanded for Arabica beans. This is due to consumers switching from Arabica beans to Robusta bean, then causing a fall in demand of Arabica beans and the demand curve (D1) will shift leftwards, from D1 to D2, ceteris paribus.


Supply:
There is an increase in supply due to the good weather in Brazil which boosts the production of crops causing 

There will also be a fall in supply as there are rising costs associated with producing coffee beans as compared to producing other beans such as Robusta beans. The wages of workers are rising fast in Brazil and Colombia, yet coffee beans need to be picked by hand. This causes a rise in cost of production and thus a fall in profit. Profit motivated farmers will then reduce their supply, causing a leftward shift in the supply curve of S1.

Ms Lee: the question is asking the fall in price of coffee beans, u should find factors that explain the rise in supply.]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/104270251 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S10GROUP3/wish/104270252 There is a decrease in demand due to the many substitues available, leading to a leftward shift of the demand curve, from D1 to D2. At the same time, there is an increase in supply because of  thus there will be a rightward shift of the supply curve, from S1 to S2.  There is a larger magnitude of shift in the demand curve as compared to the shift in the supply curve. ]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/104270252 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/16S10GROUP3/wish/104270253 Note: Please draw the diagram manually, take a photo and upload it by clicking the "video icon". 

At the original price level P1, the quantity supplied exceeds quantity demanded, leading to a surplus. This exerts a downward pressure on price as suppliers offer lower prices to get rid of the excess supply. As prime falls, quantity demanded rises while quantity supplied falls. This continues until the surplus is totally eliminated and new equilibrium formed at E2.]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/104270253 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S10GROUP3/wish/104270254 At the new equilibrium point E2, equilibrium price falls from P1 to P2 and equilibrium quantity falls from Q1 to Q2.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/104270254 Conclusion lee_xueting https://padlet.com/lee_xueting/16S10GROUP3/wish/104270255 In conclusion, the concurrent fall in demand and increase in supply would reinforce each other to cause a sharper decrease in equilibrium price. However, the effect on equilibrium quantity is indeterminate as it depends on the relative extent of changes in demand and supply. If the fall in demand is greater than the increase in supply, equilibrium quantity will fall. On the other hand, if the fall in demand is smaller than the increase in supply, equilibrium quantity will rise. ]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/104270255 Chat Box lee_xueting https://padlet.com/lee_xueting/16S10GROUP3/wish/104270256 Ms Lee: Hi]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/104270256 XIN YI https://padlet.com/lee_xueting/16S10GROUP3/wish/106931711 HI MISS LEE! WE ARE WORKING HARD NOW!]]> 2016-04-21 06:58:16 UTC https://padlet.com/lee_xueting/16S10GROUP3/wish/106931711