Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S12GROUP1 en-us 2016-04-06 02:42:09 UTC 2025-10-15 07:22:31 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S12GROUP1/wish/104270667 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S12GROUP1/wish/104270667 News Article lee_xueting https://padlet.com/lee_xueting/16S12GROUP1/wish/104270668 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S12GROUP1/wish/104270668 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S12GROUP1/wish/104270669 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S12GROUP1/wish/104270669 Group name: lee_xueting https://padlet.com/lee_xueting/16S12GROUP1/wish/104270670 Please write out the names of the members in the group.
1. Li Ying
2. Jolin
3. Jesslyn
4. Vera
5. Jieying]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S12GROUP1/wish/104270670 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S12GROUP1/wish/104270671 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/16S12GROUP1/wish/104270671 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S12GROUP1/wish/104270672 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/16S12GROUP1/wish/104270672 Introduction lee_xueting https://padlet.com/lee_xueting/16S12GROUP1/wish/104270673 Explain market mechanism:

Li Ying: The market mechanism works through the interaction of the market forces of demand and supply to determine the equilibrium price and quantity of coffee beans.

Ms Lee: only equilibrium price?

Define demand:
Jesslyn: Demand for coffee beans refer 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:
Jieying: Supply for coffee beans refer to the quantities of coffee beans that suppliers are willing and able to sell at different prices in a given period of time, ceteris paribus.




]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S12GROUP1/wish/104270673 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S12GROUP1/wish/104270674 Li Ying : Initially, the market equilibrium is at E1 at the intersection of demand (D1) and supply (S1). The initial equilibrium price and quantity is a P1 and Q1 respectively.]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S12GROUP1/wish/104270674 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/16S12GROUP1/wish/104270675 Jesslyn: (Demand factor)
Recession refers to fall in national output for at least 2 consecutive quarters. Article 1 stated that "Worse still for arabica producers, the recession in Europe has hit demand and squeezed profits for roasters." Recession will lead to loss of jobs and hence fall in income. As a result, purchasing power of households will fall. Assuming that arabica coffee beans are normal goods, demand for the coffee beans will fall, ceteris paribus. There will be a leftward shift of the demand curve from D1 to D2 as shown in figure 1.

Li Ying : As stated in article 1,  "in places like China, Indonesia and Brazil itself, where coffee is an affordable luxury for the middle class, the market is growing by around 5% a year. But these drinkers are filling their pots with cheaper robusta beans-what Kona Haque of Macquarie dubs the "emerging-market coffee." This shows that the robusta coffee bean acts as a substitute for the arabica coffee beans. Substitutes are goods that satisfy similar needs or desires within the same price range. When the price of robusta coffee beans fall and holding all other factors constant, consumers' demand for arabica coffee beans will decrease as consumers will switch from buying arabica coffee beans to robusta coffee beans. Thus, there will be a leftward shift of the demand curve from D1 to D2 as shown in figure 1. 

Jieying: (Supply factor)
From article 1, "Coffee is a labour-intensive crop; picking is still largely done by hand. Wages in Brazil and Colombia are rising fast and production costs are above prices." and from article 2, "falling prices have been accompanied by rising costs: coffee is still largely picked by hand, and wages are rising fast in Brazil and Colombia." Increase in labour costs, which is a factor input of coffee beans, leads to an increse in cost of production of coffee beans. Hence, profit generated from selling these goods decrese and profit-motivated producers will therefore decrease its supply


]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S12GROUP1/wish/104270675 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S12GROUP1/wish/104270676 Jolin: Overall, the fall in demand of Arabica beans leads to shiting of demand curve leftwards for Arabica beans, while high cost of production leads to a decrease in the supply, the supply will not change to a great extent due to Arabica farmers being unable to change supply.

Jesslyn: Recession is likely to impact a large group of people, and with falling income, demand for arabica coffee beans will fall by a large extent. Futhermore, as article 1 stated that " In places like China, Indonesia and Brazil itself, where coffee is an affordable luxury for the middle class", people are more likely to drop the idea of buying arabica coffee beans in times of recession as it has a very low degree of necessity. On the otherhand, supply of arabica coffee beans will fall by a relatively smaller extent as there are other arabica coffee beans producers such as Colombia and Ethiopia.]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S12GROUP1/wish/104270676 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/16S12GROUP1/wish/104270677 Note: Please draw the diagram manually, take a photo and upload it by clicking the "video icon". 

Jolin: 

Jieying: At original price P1, the quantity supplied exceeds quantity demanded by QdQs, leading to a surplus. This surplus exerts a downward pressure on price of coffee beans as producers are willing t offer low prices to get rid of surplus. As price falls, quantity demanded increase (arrow a) while quantity supplied decrease (arrow b). The surplus is gradually reduced until a new equilibrium is reached at E2. The new equilibrium price and quantity is lower at P2 and Q2 respectively as compared to original equilibrium E1.]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S12GROUP1/wish/104270677 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S12GROUP1/wish/104270678 Li Ying : At the new equilibrium point E2, equilibrium price falls from P1 to P2 and quilibrium quantity falls from Q1 to Q2.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S12GROUP1/wish/104270678 Conclusion lee_xueting https://padlet.com/lee_xueting/16S12GROUP1/wish/104270679 Jesslyn: The concurrent fall in demand and fall in supply will reinforce each other to cause a sharper 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 fall in demand is greater than the fall in supply, equilibrium price will fall. If the extent of the fall in demand is smaller than the fall in supply, equilibrium price will rise.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S12GROUP1/wish/104270679 Chat Box lee_xueting https://padlet.com/lee_xueting/16S12GROUP1/wish/104270680 Ms Lee: Hi
Hiii]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S12GROUP1/wish/104270680