Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S02GROUP4 en-us 2016-04-06 00:44:07 UTC 2023-04-26 15:39:43 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S02GROUP4/wish/104259745 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S02GROUP4/wish/104259745 News Article lee_xueting https://padlet.com/lee_xueting/16S02GROUP4/wish/104259746 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S02GROUP4/wish/104259746 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S02GROUP4/wish/104259747 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S02GROUP4/wish/104259747 Group name: lee_xueting https://padlet.com/lee_xueting/16S02GROUP4/wish/104259748 Please write out the names of the members in the group.
1. Akhil 
2. Nan Song
3. Isaac
4. Ismail
5. Jeremy
6. Marcus]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S02GROUP4/wish/104259748 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S02GROUP4/wish/104259749 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/16S02GROUP4/wish/104259749 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S02GROUP4/wish/104259750 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/16S02GROUP4/wish/104259750 Introduction lee_xueting https://padlet.com/lee_xueting/16S02GROUP4/wish/104259752 Explain market mechanism:
The market mechanism works through the interaction market forces of demand and supply


Define demand: Demand for coffee beans refers to the quantities of coffee beans 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 coffee beans that suppliers are willing and able to sell off at different prices in a given period of time, ceteris paribus.]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S02GROUP4/wish/104259752 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S02GROUP4/wish/104259753 Assuming coffee to be a luxury good as it is a type of beverage which is not necessary for humans, the demand and supply curve intersects at E1 and the initial equilibrium price and quantity is at P1 and Q1 respectively.

]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S02GROUP4/wish/104259753 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/16S02GROUP4/wish/104259754 Oversupply of coffee
The production of coffee beans, especially cheaper robusta beans in particular, is booming. This has caused countries such as Vietnam has gone from growing almost nothing a decade ago to producing 25m bags of robusta beans a year today. This resulted in an oversupply of coffee. The oversupply of coffee beans will result in the rightward shift in the supply curve.

Taste and preference
there are more people drinking coffee, but they prefer a cheaper type of coffee beans called robusta as compared to a more expensice coffee bean called arabica .  this is evident in passage 2 as it says 'the emerging middle classes are also discovering the joys of coffee and robusta is their bean of choice'. passage 1 also say that 'Drinkers are also filling their pots with cheaper robusta beans-what Kona Haque of Macquarie dubs the "emerging-market coffee".' thus due to a change in demand for arabica coffee beans, the demand curve of arabica beans to shift left.





Cost of Production

The cost of production of coffee has increased. In extract 1 it says " Wages in Brazil and Colombia are rising fast and production costs are above prices. Planting other sorts of crops, the usual response to agricultural boom and bust, is not an option. "
When the cost of production increases, producers have a hard time deciding whether or not to still produce coffee and with a limited amount of money, the amount of coffee to be produced would be lesser, ceteris paribus. Thus, when the cost of production of coffee increases, supply of coffee decreases. - Akhil hehe im not useless ( delete later )

Ms Lee: Please dont find factors that contradict one another. u mentioned supply increase in the first paragraph and supply decreases in the 3rd paragraph. Please note that the qn is asking about the fall in price of coffee beans, hence, explanation of why supply increases is more appropriate.



]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S02GROUP4/wish/104259754 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S02GROUP4/wish/104259755 There is a leftward shift in the demand curve  because the demand for the coffee beans have decreased. However, the supply remains constant.The leftward shift of the demand curve, from D1 to D2, shows the fall in demand while the of supply curve at S1 shows that the supply remains constant. A new equilibrium, E2, is created where the 2 curves, S1 and D2, intersect. Since there is a fall in the demand and the supply remains constant,there would be a surplus. This would create a downward pressure of the new equilibrium price. At E2, the price P2 is lower than that of P1. At E2, Q2 is greater Q1. 

Ms Lee: Please elaborate on the market adjustment process!!!
Ms Lee: how come the supply remains constant???]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S02GROUP4/wish/104259755 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/16S02GROUP4/wish/104259756 Note: Please draw the diagram manually, take a photo and upload it by clicking the "video icon". 

Ms Lee: how come the supply remains constant???]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S02GROUP4/wish/104259756 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S02GROUP4/wish/104259757 At the original price P1, quantity supplied exceeds quantity demanded, leading to a surplus. This exerts a downward pressure on price as suppliers offer lower prices to get rid of the excess supply. As price falls, quantity demanded rises while quantity supplied falls. This continues until the surplus is eliminated and new equilibrium is formed at E2 at new P2.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S02GROUP4/wish/104259757 Conclusion lee_xueting https://padlet.com/lee_xueting/16S02GROUP4/wish/104259758
  •  At the new equilibrium E2, equilibrium price decreases from P1 to P2 and equilibrium quantity decreases from Q1 to Q2.
    • ]]>     2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S02GROUP4/wish/104259758     Chat https://padlet.com/lee_xueting/16S02GROUP4/wish/106937432 Ms Lee: Hi]]> 2016-04-21 07:37:26 UTC https://padlet.com/lee_xueting/16S02GROUP4/wish/106937432