Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16A05GROUP1 en-us 2016-04-06 00:15:11 UTC 2023-02-17 05:29:24 UTC hello@padlet.com Chat Box lee_xueting https://padlet.com/lee_xueting/16A05GROUP1/wish/104256766 Mrs Ting: How is everything? Keep going and complete it :)]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16A05GROUP1/wish/104256766 Conclusion lee_xueting https://padlet.com/lee_xueting/16A05GROUP1/wish/104256767 In conclusion, the increase in cost of production for the coffee beans led to its fall in supply while the recession caused a fall in income, thus consumers' purchasing power and thereby decreased the demand. As such, both the demand and supply curves for coffee beans in Brazil shifted to the left. However, due to the differing impacts of an increase in cost of production of coffee beans versus a recession, where the recession is assumed to decrease consumers' income and purchasing power more than the increase in cost of production lowering supply of coffee beans, a surplus develops as a result and it produces a downward pressure on the price of coffee beans to increase quantity demanded for coffee beans while eliminating the surplus of coffee beans, hence the price of coffee beans falls.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16A05GROUP1/wish/104256767 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16A05GROUP1/wish/104256768 When the price decreases to P2 and quantity decreases to Q2, the new market equilibrium is at E2 where P2 and Q2 meet after the fall in demand and supply where the demand and supply curve shifted leftwards, forming the new equilibrium price  E2 at the intersection of both curves.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16A05GROUP1/wish/104256768 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/16A05GROUP1/wish/104256769 As cost of production increases, supply will fall, hence the supply curve to the left from S1 to S2, ceteris paribus. As consumers experience a fall in income due to a recession, they are now unable to pay for the beans and hence demand decreases,ceteris paribus. Furthermore, the price of sugar cane a substitute of coffee beans is lower and the demand for coffee beans decreases,ceteris paribus. Hence, the demand curve shifts to the left from D1 to D2. Initially the market eqilibrium is at E1. At the original price level of P1, the quantity demanded is now less than quantity supplied by Q1Q2, thus a surplus develops. Price is thus pushed downwards as buyers offer lower prices for the unlimited supply. As the price decreases, quantity demanded increases while quantity supplied decreases. The surplus is gradually reduced as prices reach P2. Whilst quantity decreases to Q2.]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16A05GROUP1/wish/104256769 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16A05GROUP1/wish/104256770 Supply: When cost of production for coffee beans increases, supply decreases. Hence the supply curve will shift to the left, ceteris paribus.

Demand: During a recession, income falls. This results in consumer's purchasing power to decrease. Hence,demand falls and demand curve shifts to the left, ceteris paribus.]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16A05GROUP1/wish/104256770 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/16A05GROUP1/wish/104256771 Demand: The recession caused a decrease in consumers' income, which results in a decline in their purchasing power and thus demand for coffee falls, ceteris paribus. This can be seen in "Worse still for arabica producers, the recession in Europe has hit demand and squeezed profits for roasters" from article 1.

Demand: The price of sugar cane, a substitute to coffee beans, has a lower price compared to coffee beans and as a result, demand for the beans decreases, and the demand curve shifts to the left, ceteris paribus. This can be seen in "Prices for sugar cane, a potential alternative, are low" from article 1

Supply: The increase in cost of production will cause the supply to fall and as a result, the supply curve shifts to the left, ceteris paribus.]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16A05GROUP1/wish/104256771 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16A05GROUP1/wish/104256772 At Point E1, where equilibrium price is at P1 and equilibrium quantity is at Qe, the demand curve D1 intersects the supply curve S1 at E1. At  the equilibrium price, the quantity of beans that buyers are willing and able to buy exactly balances the quantity that sellers are willing and able to sell. Thus at this price, the market is in equilibrium.]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16A05GROUP1/wish/104256772 Introduction lee_xueting https://padlet.com/lee_xueting/16A05GROUP1/wish/104256773 Explain market mechanism: It is the interaction of the market forces demand and supply which determines the equilibrium price and output.

Define demand: 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: 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/16A05GROUP1/wish/104256773 Welcome:) lee_xueting https://padlet.com/lee_xueting/16A05GROUP1/wish/104256774 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/16A05GROUP1/wish/104256774 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16A05GROUP1/wish/104256775 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/16A05GROUP1/wish/104256775 Group name: lee_xueting https://padlet.com/lee_xueting/16A05GROUP1/wish/104256776 Please write out the names of the members in the group.
1. Yang Jingren
2. Ernest Yeo Zhong Ke
3. Alvin Siah Yi kai
4. Abdul Mateen]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16A05GROUP1/wish/104256776 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16A05GROUP1/wish/104256777 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16A05GROUP1/wish/104256777 News Article lee_xueting https://padlet.com/lee_xueting/16A05GROUP1/wish/104256778 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16A05GROUP1/wish/104256778 News Article 1 lee_xueting https://padlet.com/lee_xueting/16A05GROUP1/wish/104256779 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16A05GROUP1/wish/104256779