Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S11GROUP3 en-us 2016-04-06 02:40:19 UTC 2023-07-26 13:10:20 UTC hello@padlet.com Chat Box lee_xueting https://padlet.com/lee_xueting/16S11GROUP3/wish/104270475 Ms Lee: Hi]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S11GROUP3/wish/104270475 Conclusion lee_xueting https://padlet.com/lee_xueting/16S11GROUP3/wish/104270476 Jamie: A decrease in the demand and an increase in the supply reinforces the fall in the equilibrium price of the beans in brazil and when the extent of the fall in demand is greater than the extent of increase in supply, the equilibrium quantity decreases. The equilibrium price is affected by price elasticity values. The elasticity of price of the beans in brazil, which is mostly arabica beans, is price elastic due to the substitute of robusta beans and sugarcane. As people choose robusta beans over arabica beans, Hence, percentage quantity demanded for coffee beans decreases less than proportionate as compared to the percentage decrease in price. Thus total revenue of farmers growing coffee beans will decrease.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S11GROUP3/wish/104270476 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S11GROUP3/wish/104270477 Javan: At the new equilibrium E2, the new market clearing price P2, is lower than the initial market clearing price P1. Equilibrium quantity at E2, is lesser than the equilibrium quantity at E1, as shown in the graph above.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S11GROUP3/wish/104270477 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/16S11GROUP3/wish/104270478 Javan: The demand curve shifts leftwards from D1 to D2 and the supply curve shifts rightward from S1 to S2.The degree of the leftward shift in the demand curve is more than that of the rightward shift of the supply curve as explained earlier. The new quantity demanded at P1 is Qd and the new quantity supplied at P1 is Qs,as shown in the graph below. As a result this causes a surplus of QsQd. Suppliers will then reduce the price of the coffee bean so as to attract more buyers so as to get rid of the surplus. This will then exert a downward pressure on the price on the coffee bean. As the price of the coffee bean decreases, quantity demand will increase due to the substitution and income effect, which states that buyers will switch away from the more expensive option to a cheaper substitute and that , when price of the good decrease buyers will be able to buy more quantity of the good with the same level of income. However, as price decreases quantity supplied will decrease as profit-driven suppliers will be earning less profit. Hence surplus is gradually reduced as price of the coffee bean decreases. The price will stop decreasing once it has reached the new equilibrium at E2, as shown in the graph below


]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S11GROUP3/wish/104270478 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S11GROUP3/wish/104270479 Larissa: The demand curve will shift more than the supply curve. The 2 factors affecting the demand curve affects it more implicitly than the factors for supply. this is because the supply for coffee beans is limited due to limited land that suppliers are able to grow their crops on. Hence, the factors affecting supply would cause a smaller shift as compared to factors affecting demand.  ]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S11GROUP3/wish/104270479 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/16S11GROUP3/wish/104270480 Larissa:

Supply factor
State: "good weather in Brazil means that this year's crop has turned out to be unexpectedly large". This shows that there is an increase in the supply of coffee.
Explain: suitable weather allows for the optimum growth of coffee beans, ceteris paribus.
Hence, the supply of coffee beans increases, shifting the supply curve rightwards from S1 to S2.

Demand factor 1
State: "recession in Europe has hit demand and squeezed profits for roasters" and "consumption in the developed world is flat, and the recession has squeezed the profits of big food companies such as Nestlé and Kraft". The recession has caused a decrease in demand for coffee beans.
Explain: The recession causes a fall in income and lowers the purchasing power of households and hence decreases the quantity demand for coffee beans , ceteris paribus. Coffee beans are assumed to be normal goods.
Hence, the demand for coffee beans decreases, shifting the demand curve leftwards.

Demand Factor 2
State: "They have taken to blending cheaper robusta beans into their products to maintain their margins, causing the price of robusta to fall more slowly than that of Arabica" and "But these drinkers are filling their pots with cheaper robusta beans". This shows that people choose robusta beans over the more expensive arabica beans, causing the demand for arabica beans to decrease, shifting the demand curve leftward
 ]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S11GROUP3/wish/104270480 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S11GROUP3/wish/104270481 Javan: Initially, D1 and S1 intercept each other at the point E1. The initial market clearing price at E1 is P1and the equilibrium quantity is Q1]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S11GROUP3/wish/104270481 Introduction lee_xueting https://padlet.com/lee_xueting/16S11GROUP3/wish/104270482 Introduction: 

Define demand :The demand for coffee refers to the number of coffee that consumers are both willing and able to purchase at various prices in a given period of time.  

Define supply: the amount  of coffee beans that producers are both willing and able to produce at various prices in a given period of time. Throughout the essay, we assume cetreis peribus, which is holing all other factors constant when studying the effect of each factor. 

Direction : the first part of the essay aims to explain supply factors such as good weather and climate which resulted in an increase of supply of coffee beans, and demand factors  such as the fall in the level of income and the availability of substitutes.


]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S11GROUP3/wish/104270482 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S11GROUP3/wish/104270483 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/16S11GROUP3/wish/104270483 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S11GROUP3/wish/104270484 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/16S11GROUP3/wish/104270484 Group name: lee_xueting https://padlet.com/lee_xueting/16S11GROUP3/wish/104270485 Please write out the names of the members in the group.
1. Jamie (L)
2. Zoe
3. Larissa
4. Jaaziah
5. Javan]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S11GROUP3/wish/104270485 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S11GROUP3/wish/104270486 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S11GROUP3/wish/104270486 News Article lee_xueting https://padlet.com/lee_xueting/16S11GROUP3/wish/104270487 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S11GROUP3/wish/104270487 News Article 1 lee_xueting https://padlet.com/lee_xueting/16S11GROUP3/wish/104270488 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S11GROUP3/wish/104270488