Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16A03GROUP4 en-us 2016-04-06 00:10:03 UTC 2023-04-04 10:01:37 UTC hello@padlet.com Chat Box lee_xueting https://padlet.com/lee_xueting/16A03GROUP4/wish/104256182 hi friends

]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16A03GROUP4/wish/104256182 Conclusion lee_xueting https://padlet.com/lee_xueting/16A03GROUP4/wish/104256183 There are also 2 other possible scenarios. In the case where the supply curve shifts more than the demand curve, the new equilibrium will be a rise in price and a fall in quantity. In the situation of the constant shifting of the both curves, prices will remain the same and quantity will fall. Hence, with reference to the 3 possible cases, the effect on price is indeterminate while the effect on quantity is determinate as it will always fall.

However, the explained case mentioned earlier is the more realistic one and representative of a real life scenario due to the analysis made. The leftward shift of the demand and supply curve will reinforce each other to result in a sharp decrease in quantity. (Clarissa)]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16A03GROUP4/wish/104256183 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16A03GROUP4/wish/104256184 Demand falls, demand curve shifts leftward from D1 to D2. Supply falls, supply curve shifts leftward from S1 to S2. 

At the original P, a fall in both demand and supply, leads to a surplus of coffee beans as Qs is more than Qd. This creates a downward pressure on price for coffee to clear the shortage. 
As both the price and quantity demanded for coffee decrease, the surplus is gradually reduced until it reaches equilibrium at the intersection of the new DD curve, D2 and the new SS curve, S2.
This leads to the price decreasing, from P1 to P2, as well as the quantity, from Q1 to Q2.  (Izzah) ]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16A03GROUP4/wish/104256184 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/16A03GROUP4/wish/104256185 Initially, the market is in equilibrium at the intersection of demand, D1, and supply, S1 at equilibrium, E1 for the price of P1.
The recession in Europe and the fall in consumption of coffee in America, Japan and Europe have caused the demand of coffee to decline greatly. 
The fungal disease that destroyed the coffee crops also resulted in the decline in coffee supply. Therefore, this will cause a leftward shift of supply curve from S1 to S2, ceterus paribus. 

(diagram by izzah)]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16A03GROUP4/wish/104256185 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16A03GROUP4/wish/104256186 Due to  Leaf Rust, as shown in article 2,"Central American countries where the finest coffee is grown, including Guatemala, Nicaragua and El Salvador, have been hit by leaf rust, which could wipe out 30% of this year's crop." 
meaning that supply of coffee beans will decrease greatly, shifting the supply curve to the left to a small extent. (Adri)

Due to the recession in Europe, this means a fall in income and a decrease in the purchasing power of the people thus this decreases the demand for coffee hence shifting the demand curve to the left. (Adri)

Due to the reduced coffee consumption in America, Japan and Europe, the countries with the largest coffee consumers, the demand for coffee declined significantly. The demand curve then shifts to the left greatly. (Hani)]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16A03GROUP4/wish/104256186 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/16A03GROUP4/wish/104256187 SUPPLY - "Guatemala, Nicaragua and El Salvador, have been hit by leaf rust, a fungal disease, which could destroy 30% of the crop this year" suggests that the worldwide supply for coffee will decline due to a disease. As a result, the supply curve will shift to the left. (Hani)

DEMAND - "recession in Europe has hit demand" suggests that there is a fall in incomes of the coffee consumers in Europe, ceteris paribus, which reduced the consumers purchasing power. Hence, demand for coffee fell, assuming coffee is a normal good. The demand curve will then shift to the left. (Hani)

DEMAND- "consumption in the developed world-American, European and Japanese drinkers consume more than half the world's coffee-is flat" suggests the demand for coffee in countries that consumes majority of the world's coffee production has declined greatly, assuming coffee is a normal good. Thus, the demand curve will shift leftward. (Hani)

]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16A03GROUP4/wish/104256187 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16A03GROUP4/wish/104256188 COFFEE has many devoted drinkers. Its appealling aroma and caffeinated kick mean that 83% of all American adults drink it, 63% of them on a daily basis, according to a survey from the National Coffee Association. Hence, INITIALLY HIGH DEMAND.(Adri)

The initial market equilibrium of coffee in Brazil is at E1, which is the point of intersection of D1 and S1. P1 refers to market price and Q1 would refer to market quantity. (Adri)]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16A03GROUP4/wish/104256188 Introduction lee_xueting https://padlet.com/lee_xueting/16A03GROUP4/wish/104256189 Explain market mechanism:
The use of money exchanged by buyers and sellers with an open and understood system of value and time trade-offs to produce the best distribution of goods and services. (Adri)
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. (Hani)

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. (Hani)]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16A03GROUP4/wish/104256189 Welcome:) lee_xueting https://padlet.com/lee_xueting/16A03GROUP4/wish/104256190 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/16A03GROUP4/wish/104256190 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16A03GROUP4/wish/104256191 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/16A03GROUP4/wish/104256191 Group name: lee_xueting https://padlet.com/lee_xueting/16A03GROUP4/wish/104256192 Please write out the names of the members in the group.
1. Hani
2. Izzah
3. Clarissa
4. Adriana
5.]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16A03GROUP4/wish/104256192 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16A03GROUP4/wish/104256193 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16A03GROUP4/wish/104256193 News Article lee_xueting https://padlet.com/lee_xueting/16A03GROUP4/wish/104256194 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16A03GROUP4/wish/104256194 News Article 1 lee_xueting https://padlet.com/lee_xueting/16A03GROUP4/wish/104256195 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16A03GROUP4/wish/104256195