Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S12GROUP2 en-us 2016-04-06 02:42:10 UTC 2025-04-08 15:35:13 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S12GROUP2/wish/104270683 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S12GROUP2/wish/104270683 News Article lee_xueting https://padlet.com/lee_xueting/16S12GROUP2/wish/104270684 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S12GROUP2/wish/104270684 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S12GROUP2/wish/104270685 factors affecting the fall in price
- increasing cost of labour
- decreasing price of arabica coffee - decrease in supply - choose another substitute  

]]> 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S12GROUP2/wish/104270685 Group name: lee_xueting https://padlet.com/lee_xueting/16S12GROUP2/wish/104270686 Please write out the names of the members in the group.
1. Sealvili
2. Victoria Lim
3.Shanti
4.Shirley
5.Sherman]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S12GROUP2/wish/104270686 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S12GROUP2/wish/104270687 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/16S12GROUP2/wish/104270687 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S12GROUP2/wish/104270688 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/16S12GROUP2/wish/104270688 Introduction (shirley) lee_xueting https://padlet.com/lee_xueting/16S12GROUP2/wish/104270689 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 cars  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 cars  that suppliers are willing and able to sell at different prices in a given period of time, ceteris paribus. 



]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S12GROUP2/wish/104270689 Body: State the initial equilibrium(shirley) lee_xueting https://padlet.com/lee_xueting/16S12GROUP2/wish/104270690 Initially,the market is in equilibrium at E1 at the intersection od demand(D1) and supply(S1). The initial equilibrium quantity is Q1 and the initial equilibrium price is P1.]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S12GROUP2/wish/104270690 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/16S12GROUP2/wish/104270691 (Sealvili)
2 Supply and 1 Demand
(Demand factor)
The availability of a cheaper substitute such as the robusta bean causes the demand for robusta bean to increase. when the demand for robusta beans increase, there would be a decrease in demand for arabica beans. This is also due to the increasing demand for coffee in other countries as stated in Article 1, "Strong demand for entry-level coffee-40% of the world's coffee crop is now robusta beans" and "in places like China, Indonesia and Brazil itself, where coffee is an affordable luxury for the middle class, the market is growing by around 5% a year". This increase in demand results in the rightward shift of the demand curve. 


(Supply Factor)
1. Increasing cost of production
The increasing cost of labour in Brazil for Arabica coffee as stated in Article 1, "Wages in Brazil and Colombia are rising fast and production costs are above prices" causes a decrease in supply. This results in a leftward shift of the supply curve as it would reduce the amount of Arabica coffee bean produced in Brazil. 

2. Weather/climate
"And good weather in Brazil means that this year's crop has turned out to be unexpectedly large". Due to the good weather, it is expected for an increase in the amount of Arabica coffee beans produced. This results in a rightward shift of the supply curve. 

]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S12GROUP2/wish/104270691 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S12GROUP2/wish/104270692 Victoria: 

Due to the availability of a cheaper substitue such as the Robusta bean, the demand for Arabica bean would decrease. This is shown by a leftward shift of the demand curve from D1 to D2. At the same time, the good weather to grow Arabica beans and the expectation of rising future prices of Arabica beans will cause an increase in supply of Arabica beans. This is represented by a rightward shift of the supply curve from S1 to S2.

In this case, it is likely that the extent of the decrease in demand is greater than the rise in supply.

The availability of a cheaper substitute such as the Robusta beans will allow consumers to switch away from Arabic beans to Robusta beans as Robusta beans are cheaper and satisfies the same needs as Arabic beans, hence the fall in demand is likely to have a greater extent than the rise in supply. The increase of cost of production and good weather will have a smaller impact as there is already fewer consumers buying Arabic beans due to the presence of alternatives like Robusta beans. Thus, the supply will rise by a relatively small extent. 

In addition, as Arabic beans are considered as luxury goods, demand of Arabic beans is price elastic as people can drink water instead of coffee. This implies that the increase in cost of production and good weather will lead to a less than proportionate decrease in demand for Arabic coffee, ceteris paribus. Hence, we can expect that the extent of the fall in demand to be greater than the extent of the rise in supply of Arabic beans.]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S12GROUP2/wish/104270692 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/16S12GROUP2/wish/104270693 (shanti)
At P1, there is a simultaneous fall in demand and increase in supply, with the extent of the decrease in demand being greater than the extent of the increase in supply. As the quantity supplied exceeds quantity demanded, there is a surplus. Thus, a downward pressure is exerted on the price of coffee beans as sellers lower prices to get rid of the surplus. As price falls, quantity demanded rises while quantity supplied falls and the surplus is gradually reduced until new equilibrium of lower price and quantity of coffee beans is reached at P2. 

]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S12GROUP2/wish/104270693 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S12GROUP2/wish/104270694 ShirleyAt the original price levelP1. quantity supplied(Qs) now exceeds quantity demanded (Qd) by QdQs. Hence a surplus of QsQd develops. The surplus exerts a downward pressure as producers are willing to offer lower prices to get rid of the surplus. As price falls, quantity demanded rises arrow to the right while quantity supplied falls arrow to the left.  The surplus is gradually reduced until a new equilibrium is reached at E2. The new equilibrium price is lower at P2 and equilibrium quantity is lower at Q2 compared to the initial equilibrium E1.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S12GROUP2/wish/104270694 Conclusion lee_xueting https://padlet.com/lee_xueting/16S12GROUP2/wish/104270695 Shirley: The concurrent fall in demand and increase in supply would reinforce each other to cause a sharp fall 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 supply, equilibrium quantity will rise.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S12GROUP2/wish/104270695 Group Chat https://padlet.com/lee_xueting/16S12GROUP2/wish/106920682 2016-04-21 04:55:12 UTC https://padlet.com/lee_xueting/16S12GROUP2/wish/106920682