Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S11GROUP5 en-us 2016-04-06 02:40:21 UTC 2026-01-18 08:27:46 UTC hello@padlet.com Chat Box lee_xueting https://padlet.com/lee_xueting/16S11GROUP5/wish/104270507 Ms Lee: Hi]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S11GROUP5/wish/104270507 Conclusion lee_xueting https://padlet.com/lee_xueting/16S11GROUP5/wish/104270508 In conclusion, the increase in supply and decrease in demand reinforce each other to result in a significant decrease in equilibrium price of coffee from P0 to P1. However, the effect on equilibrium quantity may be indeterminate. Above, we have argued that equilibrium quantity increases because the supply for coffee increases by more than the decrease in demand. However, if the decrease in demand exceeds increase i supply instead, the equilibrium quantity would decrease.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S11GROUP5/wish/104270508 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S11GROUP5/wish/104270509 The new equilibrium is at E1, with price at P1 and quantity at Q1.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S11GROUP5/wish/104270509 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/16S11GROUP5/wish/104270510 At the original price level P0, the new quantity supplied, Qs, exceeds the new quantity demanded, Qd.
This creates a surplus,
thus exerting downward pressure on the price of the coffee beans.
As coffee bean prices decrease, quantity demanded increases due to the law of demand, while quantity supplied decrease due to the law of supply, and the surplus is gradually reduced, 
until the new equilibrium E1 is reached for the market for coffee beans where quantity demanded equals quantity supplied, with a lower price P1 and quantity Q1.]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S11GROUP5/wish/104270510 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S11GROUP5/wish/104270511 There is a leftward shift in the demand curve and a rightward shift in the supply curve. It is likely that increase in supply exceeds decrease in demand of coffee. It is likely for supply to increase significantly as Brasilian farmers and Colombian farmers had invested a lot in growing more coffee back in 2011 due to the high prices then plus the need to seize the opportunity of the absence of bad weather in the coming year that should have come. 
On the other hand, demand will not decrease by much as 'First, the traditional markets for their wares are saturated.' and 'China, Indonesia and Brazil itself, where coffee is an affordable luxury for the middle class, the market is growing by around 5% a year' which will decrease effects of decrease in demand in Europe due to recession
 (S> D)]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S11GROUP5/wish/104270511 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/16S11GROUP5/wish/104270512 1 Demand: One of the factors contributing to the fall in prices of coffee beans in Brazil is due to recession. The articles state that "recession in Europe has hit demand and squeezed profits for roasters ", showing that there is a decrease in household incomes due to decrease in production and hence higher employment. This leads to a decrease in purchasing power, which is the decrease in ability to purchase goods and services, including coffee beans. Thus, there is a decrease in demand for coffee beans in Brazil as consumers in Brazil are also affected by the recession, ceteris paribus.

2 Demand: Another factor that caused the fall in prices of coffee beans in Brazil is due to robusta coffee being a substitute. The articles state that there is a "strong demand for entry-level coffee", and that consumers are "filling their pots with cheaper robusta beans-what Kona Haque of Macquarie dubs the 'emerging-market coffee'." This shows that consumers are leaning towards robusta coffee beans as a substitute for arabica coffee beans as they are cheaper. This leads to an increase in demand for robusta coffee beans, which are produced in Vietnam, but a decrease in demand for arabica coffee beans which are produced in Brazil.

1 Supply factor: good growing conditions/speciality 
one factor that causes the increase in supply is the good growing conditions of the coffee beans. good growing conditions such as suitable temperatures for the coffee beans to be harvested , these temperatures are crucial for the coffee beans to grow well. the suited temperatures allows for optimum growth of coffee beans and a faster rate for coffee beans to grow hence increasing the supply of coffee beans. suitable weather conditions, such as rain may be good for the growth of coffee beans hence leading to increase harvest of coffee beans and thus increasing the supply of coffee beans.]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S11GROUP5/wish/104270512 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S11GROUP5/wish/104270513 The initial equilibrium, E0 is when price is at P0 and quantity is at Q0.]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S11GROUP5/wish/104270513 Introduction lee_xueting https://padlet.com/lee_xueting/16S11GROUP5/wish/104270514 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 for sale on the market

Define demand:
Demand is the amount of a good that consumers are able and willing to purchase in a period of time at various prices, ceteris paribus.

Define supply:
Supply is the amount of a good that producers are able and willing to sell in a period of time at various prices, ceteris paribus.



]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S11GROUP5/wish/104270514 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S11GROUP5/wish/104270515 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/16S11GROUP5/wish/104270515 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S11GROUP5/wish/104270516 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/16S11GROUP5/wish/104270516 Group name: lee_xueting https://padlet.com/lee_xueting/16S11GROUP5/wish/104270517 Please write out the names of the members in the group.
1. Danial
2. Geraldine
3. Sarah
4. Michael
5.]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S11GROUP5/wish/104270517 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S11GROUP5/wish/104270518 There is a decrease in demand for coffee beans in Brazil due to substitutes like robusta. Due to the recession in Europe, the demand for coffee beans has decreased, minimizing profits of producers. However, producers specialize in growing coffee beans and continue to produce coffee beans because of the good conditions, thus supply increases.]]> 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S11GROUP5/wish/104270518 News Article lee_xueting https://padlet.com/lee_xueting/16S11GROUP5/wish/104270519 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S11GROUP5/wish/104270519 News Article 1 lee_xueting https://padlet.com/lee_xueting/16S11GROUP5/wish/104270520 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S11GROUP5/wish/104270520