Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S02GROUP2 en-us 2016-04-06 00:44:09 UTC 2023-02-14 22:23:37 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S02GROUP2/wish/104259775 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S02GROUP2/wish/104259775 News Article lee_xueting https://padlet.com/lee_xueting/16S02GROUP2/wish/104259776 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S02GROUP2/wish/104259776 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S02GROUP2/wish/104259777 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S02GROUP2/wish/104259777 Group name: JKADR lee_xueting https://padlet.com/lee_xueting/16S02GROUP2/wish/104259778 Please write out the names of the members in the group.
1. Jedidiah
2. Kenneth
3. Darvinder
4. Abdullah
5. Raditia]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S02GROUP2/wish/104259778 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S02GROUP2/wish/104259779 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/16S02GROUP2/wish/104259779 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S02GROUP2/wish/104259780 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/16S02GROUP2/wish/104259780 Introduction lee_xueting https://padlet.com/lee_xueting/16S02GROUP2/wish/104259781 Explain market mechanism:


Define demand:


Define supply:

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.

Demand for coffee beans is defined as the quantities of coffee beans that consumers are willing and able to purchase at different prices over a given period of time, ceteris paribus .

Supply for coffee beans is defined as the quantities of coffee beans that suppliers are willing and able to sell at different prices over a given time period, ceteris paribus 



]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S02GROUP2/wish/104259781 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S02GROUP2/wish/104259782 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/16S02GROUP2/wish/104259782 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/16S02GROUP2/wish/104259783 There has been a change in taste and preferences as most consumers now prefer to purchase robusta coffee instead of arabica coffee. With more growing influence to consume robusta coffee, consumers are becoming more status conscious. This means that there will be a decrease in demand of arabica coffee and an increase in demand for robusta coffee, ceteris paribus. 

There has been an increase in the quality of weather in Brazil. The weather has become more sunny and this makes the environment more suitable for growng arabica coffee beans This increases the productivity of the farmers as now they are able to harvest more arabica coffee beans. As productivity increases, there will be an increase in supply of arabica beans, ceteris paribus.

Ms Lee: What do u mean by quality?  I added a sentence. Does it explain? ok:) but language wise, don't think ppl use quality to describe weather. may be u can rephrase the statement? idk how rephrase

There has been a recession in Europe. This decreases the purchasing power of European consumers. Europe is where most of the demand for arabica coffee comes from and arabica is the main type of coffee supplied by Brazil. A decrease in purchasing power will lead to a decrease in demand of arabica coffee beans because coffee beans are luxury goods, ceteris paribus. Thus it would take up a larger proportion of their income which they could would not want to spend on coffee.



Ms Lee: conceptual error. how will a fall in income (non-price factor) affect the quantity demanded of coffee?
 Decrease in purchasing power means less demand right because coffee is a luxury good so the people will focus more on basic necessity right? Ms Lee, yes should be demand not quantity demanded.]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S02GROUP2/wish/104259783 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S02GROUP2/wish/104259784 supply curve shift to the right and demand curve shifts leftward.As such there would be a surplus,as such there would be  downward pressure on the equilibrium price. therefore the new supply curve and demand curve would now intersect at a new equilibrium price at P2 which is lower than the first equilibrium price and at Q2 which is more than Q1. The magnitude shift in supply is more than demand because weather can affect production of coffee by a big margin while the there is still demand from outside of Europe thus the extent of the decrease is less than the increase in supply

Ms Lee: weak justification of the shifts

]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S02GROUP2/wish/104259784 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/16S02GROUP2/wish/104259785 Note: Please draw the diagram manually, take a photo and upload it by clicking the "video icon". 
Its upside down

Ms Lee: Please explain the market adjustment process.]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S02GROUP2/wish/104259785 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S02GROUP2/wish/104259786 Since supply increases the quantity of the good increases and the price decreases. Since demand decreases both the quantity of the good decreases and the price decreases. --> (Ms. Lee: This is for ur thinking process, there is no need to write this out)

 As such the increases or decrease of the quantity is indeterminate however the decrease in demand and increase i supply reinforce the increase in supply. (Ms Lee: conceptual error present in this sentence, why will the decrease in demand and increase in supply reinforce the increase in supply???)]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S02GROUP2/wish/104259786 Conclusion lee_xueting https://padlet.com/lee_xueting/16S02GROUP2/wish/104259787 The decrease in quantity demanded has originally caused shortage with a decrease in equilibrium price and it has been reinforced with the increased in supply. Weather is the most important factor because scientific research has shown that a couple of degrees increase or degrees can affect the productivity of the arabica coffee bean. This allows more than proportionate increase in quantity supplied of arabica coffee beans.

(Ms Lee: conceptual error! why will increase in supply and fall in demand with Qs greater than Qd lead to a shortage???)

]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S02GROUP2/wish/104259787 Chat Box lee_xueting https://padlet.com/lee_xueting/16S02GROUP2/wish/104259788 Ms Lee: Hi

]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S02GROUP2/wish/104259788