Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16A08S07GROUP1 en-us 2016-04-06 00:22:39 UTC 2023-05-18 02:01:20 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257522 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257522 News Article lee_xueting https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257523 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257523 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257524 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257524 Group name: lee_xueting https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257525 Please write out the names of the members in the group.
(16S07)
1. Alyssa
2. Luke
3. An
4. Tianni]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257525 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257526 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/16A08S07GROUP1/wish/104257526 Welcome:) lee_xueting https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257527 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/16A08S07GROUP1/wish/104257527 Introduction lee_xueting https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257528 Explain market mechanism:
Market mechanism is the principle of money exchanged by producers and consumers. If each individual in the society acts in such a way as to maximise his/her own interest, the free market will assure maximum possible benefits to society as a whole. (Invisible Hand principle) Which hence best distributes goods and services in a free market.

Define demand:
demand is the amount of a good that consumers are able and willing to purchase in a given period of time at various places

Define supply:
supply is the amount of a good that producers are able and willing to offer for sale in a given period of time at various prices.


Alyssa]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257528 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257529 The original demand and supply curves are at D1 and S1, where equilibrium is at E1, and equilibrium price and quantity is at P1 and Q1 respectively. 

An]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257529 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/16A08S07GROUP1/wish/104257530 DEMAND 1. “The production of cheaper Robusta beans in particular, is booming.” "The massive production of robusta beans in vietnam results in an oversupply of coffee  " show that the change in demand of Arabica coffee beans, most of which are produced in Brazil, is due to non-price factor: high availability of substitutes. As the price of Arabica beans is higher than that of Robusta beans, quantity demanded for Arabica beans decreases. Consumers(coffee production companies+coffee drinkers) will switch from buying Arabica beans to Robusta beans as they ought to benefit from lower prices, and this causes the demand for Arabica beans to decrease and its curve shifts to the left. (Brazilian framers have to cut down price of Arabic beans to compete with the low-price beans for profits.)

DEMAND 2. “Coffee is an affordable luxury for the middle class in some developing countries; the market is growing by around 5% a year. But these drinkers are filling their pot with cheaper Robusta beans.” shows that coffee consumers in certain developing countries have great keenness on buying Robusta coffee beans rather than Arabica coffee beans, this cause the demand for the fancy beans produced in Brazil decreases and its demand curve shifts to the left.

SUPPLY 3. "Many Brazilian and Colombian farmers invested to boost production of arabica in response to the high prices of 2011." shows that oversupply of arabica beans causes further depressed prices.  It leads to the rightward shift of supply curve.

SUPPLY 4: 2011 Brazilian farmers invested heavily in new acreage and improved yields with better husbandry and more fertilizer. High prices also convinced Colombian farmers to replant many coffee plantations with more productive bushes. => higher state of technology => supply curve shifts to the right

Demand: First, the traditional markets for their wares are saturated. Growth in Europe, America and Japan, which between them glug over half the world's coffee, is flat. Second, 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". => tastes and preferences => demand curve shifts left  "

There are availability of  close substitutes for Brazil Arabica coffee in the market- robusta coffee. Consumers could purchase other robusta coffee from other producers such as Vietnam due to its oversupply leading to the fall in price 9” production of coffee, and of cheaper robusta beans in particular, is booming.("Vietnam has gone from growing almost nothing a decade ago to producing 25m bags of robusta beans a year today.”). Therefore, due to the price of its substitutes, coffee producers in Brazil cannot sell it in a higher price as to remain competitive in the  industry. This leads to the decrease of price mentioned in the article where 'The farmers are upset by falling prices: their beans now fetch around $106 a 60kg bag, a four-year low and less than half what they could get a couple of years ago'  

Tianni + An]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257530 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257531 Demand curve shifts left due to fall in demand from non-price factors.
Supply curve shifts to the right due to the rise in supply from non-price factors.
Fall in Demand is greater than the rise in supply, as there are more fall in demand factors as compared to rise in supply factors.

Luke ]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257531 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257533 Final equilibrium is at E2, which is lower than E1.

Luke]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257533 Conclusion lee_xueting https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257534 The concurrent rise in supply and fall in demand would reinforce each other to cause a sharper fall in equilibrium price. However, the effect on equilibrium quantity is indeterminate as it depends on the relative extent of changes in demand and supply.
If the fall in demand is greater than the increase in supply, equilibrium quantity will fall. On the other hand, if the fall in demand is smaller than the increase in supply, equilibrium quantity will rise.
An]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257534 Chat Box lee_xueting https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257535   Wong: hello, pls read the articles and begin filling in the different segments
You can discuss who does which part

alyssa: who is doing which part?
An: Wait lets see who's here first?
Luke: We have like 7 boxes to fill up, so maybe we could do 2 each?
Luke: Ok I'm wrong there's 8 boxes so 2 each
Luke: Please state which 2 you want to do
An: I thought there are 7 boxes
Luke: There's 8 if you count properly.
Luke: Where's Tianni btw
Luke: Ok i mistook the question itself for a box
An: Nvm we just fill in together whatever we can do first, like those definitions 
alyssa: done
Mr Wong: 


Tianni: sorry guys i 
alyssa:
Luke: Do we want to discuss the points first?
Luke: Cheaper and better substitute (taste and preferences, availability of substitutes)

Luke: An but aren't we supposed to explain 3 factors on how the price of coffee beans fall? How does increase in cop lead to that

 
Tianni: how to open the attchaments?
             help pls
             i hv been clicking them for the past ten minus 
             i cant open thems ；  
                     
Luke: I sent the articles on whatsapp
Tianni: thanks luke 

Mr Wong:  a key part of this exercise is to explain the dd and ss determinants (non-price factors) - pls fill it in to the correct box

First, the traditional markets for their wares are saturated. Growth in Europe, America and Japan, which between them glug over half the world's coffee, is flat. Second, 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". => tastes and preferences => demand curve shifts left


2011 Brazilian farmers invested heavily in new acreage and improved yields with better husbandry and more fertilizer. High prices also convinced Colombian farmers to replant many coffee plantations with more productive bushes. => higher state of technology => supply curve shifts right  ,  



   
]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16A08S07GROUP1/wish/104257535 Body: Using the market adjustment process, explain how the shift(s) changes the equilibrium price and quantity (Explanation of diagram): https://padlet.com/lee_xueting/16A08S07GROUP1/wish/107028897 Fall in demand is more significant that rise in supply. A downward pressure on price caused by the surplus, causes the price and quantity to fall, from P1 to P2 and Q1 to Q2 respectively.

Luke]]> 2016-04-21 15:06:05 UTC https://padlet.com/lee_xueting/16A08S07GROUP1/wish/107028897