Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S21GROUP5 en-us 2016-04-06 00:35:08 UTC 2023-03-21 16:52:19 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S21GROUP5/wish/104258818 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S21GROUP5/wish/104258818 News Article lee_xueting https://padlet.com/lee_xueting/16S21GROUP5/wish/104258819 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S21GROUP5/wish/104258819 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S21GROUP5/wish/104258820 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S21GROUP5/wish/104258820 Group name: lee_xueting https://padlet.com/lee_xueting/16S21GROUP5/wish/104258821 Please write out the names of the members in the group.
1. Ding Soo Yi
2. Peihua Tan
3. Sheena Ng
4. Li yong yi joaquin 
5.]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S21GROUP5/wish/104258821 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S21GROUP5/wish/104258822 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/16S21GROUP5/wish/104258822 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S21GROUP5/wish/104258823 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/16S21GROUP5/wish/104258823 Introduction lee_xueting https://padlet.com/lee_xueting/16S21GROUP5/wish/104258824 Explain market mechanism: The market mechanism works through the interaction of the market forces of demand and supply to determine 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: 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/16S21GROUP5/wish/104258824 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S21GROUP5/wish/104258825 The original DD and SS curves are at D1 and S1 where equilibrium is at E1 and equilibrium price and quantity is at P0 and Q0 respectively.


]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S21GROUP5/wish/104258825 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/16S21GROUP5/wish/104258826 Supply factor: Increased cost of production.
Due to the falling prices that is accompanied by rising cost, coffee beans are picked by hand. Hence, manpower are needed and this causes increased cost of production alongside the fast increase of wages, further increasing the cost of production. This results in a leftward shift in the supply curve and demand curveThe leftward shift in the supply curve is caused by decreased amount of coffee beans produced due to lesser profits earned as a result of increased cost of production, c.p.   

Demand factors
1. prices of substitutes causes the demand curve to shift leftward, c.p as when price of substitutes (good b, robusta) decrease, demand for good A(arabica) will decrease. As from news article 2, "cheaper robusta beans in particular, is booming" and 'they have taken to blending cheaper robusta beans" this shows that due to the cheaper price of robusta, it has lead to the fall in demand for arabica as arabica and robusta both for coffee bean. As from the news article, more company  are using robusta to brew coffee as both robusta and arabica serves the same purpose and since a company purpose is to maximise profit and minimise cost, they would use a cheaper coffee bean hence leading to the decrease in demand for arabica. Therefore, this lead to a leftward shift in the demand curve for the coffee bean in brazil(arabica).

2. Taste and preferences of consumers
From article 1, "Not everyone appreciates the pungent smell of roasting coffee." This means that not everyone enjoys the pungent smell of roasting coffee as everyone has a different taste and preferences. This will cause the demand curve to shift leftwards as not everyone will want to buy the good, which is coffee beans in this case. The leftwards shift in the demand curve is caused by a decrease in the amount of coffee beans demanded due to the different taste and preference of the consumers, ceteris paribus.

]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S21GROUP5/wish/104258826 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S21GROUP5/wish/104258827 There will be an leftward shirt in Demand curve and leftward shirt in Supply curve. ]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S21GROUP5/wish/104258827 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/16S21GROUP5/wish/104258828 Demand curve will shift leftward from d1 to d2 and supply curve will shift left ward from s1 to s2. the demand curve shift is more significant than the supply curve as the price of substitutes and taste and preferences would cause a huge drop in demand as many consumers would move towards coffee beans which is way cheaper and serve the same purpose hence, the decrease in demand would be more significant.]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S21GROUP5/wish/104258828 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S21GROUP5/wish/104258829 The quantity supplied is more than quantity demanded at P1, the original price, causing a surplus as there is a downward pressure on the price. As the price decreases, there is an increase of quantity demanded and quantity supplied falls E2, which is the new equilibrium.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S21GROUP5/wish/104258829 Conclusion lee_xueting https://padlet.com/lee_xueting/16S21GROUP5/wish/104258830 In conclusion, the original demand and supply curves are at DD1 and SS1 where the equilibrium us at E1 and equilibrium price and quantity is at P1 and Q1 respectively. 
There is a leftward shift DD from DD1 to DD2 and a leftward shift in SS from SS1 to SS2. At original price P1, the quantity supplied is more than the quantity demanded. A surplus occurs, causing a downward pressure on price. As price decreases, the quantity demanded rises and quantity supplied falls until the new equilibrium is met at E2. 

the concurrent fall in supply and demand would reinforce each other to cause a fall in equilibrium quantity. However, the effect on equilibrium price is indeterminate as it depends on the relative extent of changes in demand and supply. If the extent of the fall in demand is less than the fall in supply, equilibrium price will rise. On the other hand, if the fall in demand is more than the fall in supply, equilibrium price will fall. ]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S21GROUP5/wish/104258830 Chat Box lee_xueting https://padlet.com/lee_xueting/16S21GROUP5/wish/104258831 Mr Wong: Guys pls start filling in the various segments 
assign yourselves in terms of which part you want to do
or 1 person does the assigning]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S21GROUP5/wish/104258831