Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S08S24GROUP5 en-us 2016-04-06 00:53:56 UTC 2026-01-04 11:09:19 UTC hello@padlet.com Chat Box lee_xueting https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261066 Ms Lee: Hi]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261066 Conclusion lee_xueting https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261067 At the original price P1, the  decrease in supply for coffee beans is more than that of demand leads to the new quantity demanded exceeding thr new quantity supplied. This creates a shortage .]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261067 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261068  Zhou Xiao:  at the new equilibrium,the price rises from p1 to p2 and the quantity demanded rises from q1 to q2]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261068 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/16S08S24GROUP5/wish/104261069 Note: Please draw the diagram manually, take a photo and upload it by clicking the "video icon". 

Habib: Initially, the coffee beans market is in equilibrium at the intersection of demand (D1) and supply (S1) where the equilibrium price and quantity is at P1 and Q1 respectively at equilibrium E1. The cheaper substitues results in a in fall in demand by a leftward shift of the demand curve from D1 to D2, ceteris paribus. At the same time, the optimum weather condition for coffee beans leads to a rise in supply of coffee beans, represented by a rightward shift of the supply curve from S1 to S2, ceteris paribus. At the original price level, P, QS exceeds QD by QDQS, surplus develops. This will exert an downward pressure on price. As price decreases, quantity demanded rises and quantity supplied falls. This will continue until the point QD=QS and the surplus is totally eliminated. Finally, the market is back in equilibrium at the intersection of the new demand curve (D2) and the supply curve (S2). Market clears at the new equilibrium point E2, equilibrium price rises from P1 to P2 and equilibrium quantity rises from Q1 to Q2.  ]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261069 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261070 Habib: Demand and supply will shift. The demand curve will shift to the left. The supply curve will shift to the right. However, the magnitude of shift of supply will be larger than the magnitude of shift of demand.

Yueqi:dd curve shifts to the right, ss shifts to the left. the decrease in supply exceeds the increase in demand for coffee beans.

]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261070 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/16S08S24GROUP5/wish/104261071 UHabib: Demand is defined as the amount of a good that consumers are able and willing to purchase in a given period of time at various prices. From the preamble, strong demand for entry-level coffee-40% of the world's coffee crop is now robusta beans-has enabled Vietnam to go from almost nothing a decade ago to producing 25m bags today (see chart). Worse still for arabica producers, the recession in Europe has hit demand and squeezed profits for roasters. These processors, including big food firms such as Nestlé and Kraft, have responded by blending cheaper robusta with arabica  This shows that with cheaper substitutes, people are more willing and able to buy the Robusta coffee beans and hence the demand for coffee beans has decreased in the market due to cheaper substitutes. 

Yueqi:
Demand Factor1: tastes and preferences
evidence:  In the developing countries such as China, Indonesia and Brazil, meanwhile, where the emerging middle classes are discovering the joys of coffee and the market is growing by around 5% a year.
Expain:The demand for coffee increases and the demand curve will shift to the right,ceteris paribus.
Supply factor 1: cost of input prices
Evidence:coffee is still largely picked by hand, and wages are rising fast in Brazil and Colombia.
Explain: The increase in the cost of production leads to lesser profits for the farmers and they are now less willing and able to increase the production of coffee beans]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261071 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261072 Yueqi: At the original equilibrium E1,price of coffee beans is P1 and quantity Q1]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261072 Introduction lee_xueting https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261073 Explain market mechanism:
Yueqi:The markey mechanism is the interaction of the market forces of demand and supply to determine the equilibrium price and output.


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

Define supply:
Colemann: Supply is defined as the amount of a 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/16S08S24GROUP5/wish/104261073 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261074 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/16S08S24GROUP5/wish/104261074 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261075 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/16S08S24GROUP5/wish/104261075 Group name: lee_xueting https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261076 Please write out the names of the members in the group.
1. Colemann
2. Andrew
3. Zhou Xiao
4. Yueqi
5. Habib]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261076 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261077 Colemann: '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.' and 'Many Brazilian and Colombian farmers invested to boost production of arabica in response to the high prices of 2011, which has added to the oversupply and further depressed prices.And good weather in Brazil means that this year's crop has turned out to be unexpectedly large.' (News Article 2) These factors have caused a large increase in supply of arabica coffee which results in a fall of coffee prices.]]> 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261077 News Article lee_xueting https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261078 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261078 News Article 1 lee_xueting https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261079 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S08S24GROUP5/wish/104261079