Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S07S15GROUP4 en-us 2016-04-06 00:52:23 UTC 2023-02-25 19:17:50 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260835 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260835 News Article lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260836 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260836 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260837 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260837 Group name: lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260838 Please write out the names of the members in the group.
1. Kunal
2. Chee Kang
3. Qian Wei
4. Shawn
5.]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260838 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260839 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/16S07S15GROUP4/wish/104260839 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260840 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/16S07S15GROUP4/wish/104260840 Introduction lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260841 Explain market mechanism:
The market mechanism works through the interaction of the market forces od demand and supply to determine the equilibrium price and quantity of coffee beans in Singapore

Define demand:
Demand is defined as the amount of a coffee beans that consumers are able and willing to purchase in a given period of time at various places

Define supply:
Supply is defined as the amount of a coffe beans that producers are able and willing to offer for sale in a given period of time at various places

]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260841 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260842 Initially the market is in equilibrium at the intersection of the Demand (D1) and the Supply (S1) curve. The initial equlibrium price and quantity is at P1 and Q1 respectively]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260842 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/16S07S15GROUP4/wish/104260843
Demand will rise due to recession in Europe. "Recession in Europe has hit demand and squeezed profits for roasters." This indicates that Europeans in the European economy will suffer from retrenchment or reduced real income, reducing purchasing power. Assuming that coffee is a normal good in Europe, the coffee market in Europe will suffer. This allow Brazilian coffee market to rise up. Therefore DD shifts right, ceteris paribus.

Ms Lee: how does the recession affect demand or supply? how come when consumers have less purchasing power, the brazilian coffee market will rise up and demand shifts right???? 
Qianwei: Isn't the recession regional? So it affects the European market, while Southern American gains an upper hand in this?

Supply will rise due to outbreak of diseases. From the second article, "Much of the finest coffee is grown in Central America in places such as Guatemala, Nicaragua and El Salvador. That region has been hit by leaf rust, a fungal disease, which could destroy 30% of the crop this year. Cutting back plants to deal with it is set to hit production next year, too. For the tastiest coffee, there is no chance of a cheap shot." Destroyed crops will lead to reduced production. On the other hand, "in Brazil, good weather in Brazil means that this year's crop has turned out to be unexpectedly large." This causes SS of coffee beans in Brazil to shift right, ceteris paribus.

Ms Lee: destroyed crops will lead to reduced production --> why will supply rise due to outbreak of diseases??? 
Qianwei: Destroyed crops occurs outside Brazil....
Ms Lee: then why do u mentioned it in ur answer?

Supply will rise due to competitive supply. Prices for sugar cane, a potential alternative, are low. Coffee is mainly grown on small plots by farmers who have known nothing else. Coffee is more worth to sell than Sugar cane, so farmers will naturally grow more coffee beans. Since they don't have the knowledge to plant other crops, SS will shift right for coffee beans, ceteris paribus.]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260843 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260844 There is a greater magnitude in the shift of the supply curve as the good weather in Brazil and the competitive supply of coffee beans reinforce each other and cause a greater shift in magnitude for supply curve

Ms Lee: Justification does not really make sense]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260844 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/16S07S15GROUP4/wish/104260845 Ms Lee: Where is ur explanation of the market adjustment process?

]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260845 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260846 Due to the downwards pressure, quantity supplied will decrease and quantity demanded will increase until the new equilibrium E2 The new equilibrium in prices will cause Po to fall to P1, and new eqiulibrium in quantity will cause Qo to rise to Q1.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260846 Conclusion lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260847
In the case, both SS and DD will shift right, with SS having a greater shift than DD. Concurrent rise in supply and demand would reinforce each other to cause a sharper rise in equilibrium quantity. However, the effect on equilibrium prices is indeterminate as it depends on the relative extent of changes in demand and supply. If the extent of rise in demand is less than the rise in supply, equilibrium price will fall. on the other hand, if the rise in demand is more than the rise in supply, equilibrium price will rise. Overtime, Brazil's coffee bean supply will become more price elastic as they can change all factors of production. The greater the elasticity of the supply, the greater the fall in prices. At the same time, the increase in quantity supplied is greater than proportionate of the fall in prices. In conclusion, coffee beans in Brazil will experience a fall in price.

Ms Lee: Why will demand increase? pls read the articles!!! ]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S07S15GROUP4/wish/104260847