Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S07S15GROUP1 en-us 2016-04-06 00:52:21 UTC 2023-02-18 10:11:06 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260789 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260789 News Article lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260790 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260790 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260791 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260791 Group name: lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260792 Please write out the names of the members in the group.
1. Afiq
2. Abie
3. Tasya
4. Tang Heng
5.]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260792 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260793 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/16S07S15GROUP1/wish/104260793 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260794 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/16S07S15GROUP1/wish/104260794 Introduction lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260795 Explain market mechanism: 
The market works through the interaction of the market forces of demand and supply to determine the equilibrium price and quantity of coffee beans in Brazil.

Define demand:
Demand refers to the quantities of coffee beans that the consumers are willing and able to purchase in a given period of time at various prices, ceteris paribus.

Define supply:
Supply refers to the quantities of coffee beans that the suppliers are willing and able to sell in a given period of time at various prices, ceteris paribus.

Ms Lee: GOOD:)

]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260795 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260796 Initially, the market is at equilibrium E1, at the intersection of Demand (D1) and Supply (S1). The initial equilibrium price and quantity are at P1 and Q1 respectively.

Ms Lee: OK:)]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260796 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/16S07S15GROUP1/wish/104260798 The good weather in Brazil means that the there are more coffee beans being produced. This is because coffee is an agricultural product that is susceptible to changes of weather. Therefore, this results in an increase in supply for coffee beans in Brazil, ceteris paribus. As stated in article 2,"And good weather in Brazil means that this year's crop has turned out to be unexpectedly large."

Ms Lee: As stated in article 2? what is stated in article 2?

The high prices of arabica beans in 2011 has encouraged many Brazilian and Colombian farmers to invest in production of arabica due to expectation of future seller price, increasing the supply of arabica beans, further adding to the oversupply and depressing price, ceteris paribus. As stated in Article 2: "Brazilian farmers invested heavily... high prices also convinced Colombian farmers to replant many coffee plantations with more productive bushes."]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260798 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260799 The emergence of cheaper robusta beans results to the fall in demand shown by a leftward shift of demand curve from D1 to D2. The good weather and high prices of arabica beans in 2011 results in a rise in supply as shown by a rightward shift in supply curve from S1 to S2 . In this case, it is likely that the extent of the fall in demand is greater than the rise in supply, This is because the emergence of cheaper robusta beans results in global market growth. Markets in countries such as Indonesia, China and Brazil is enjoying a 5% growth among the middle classes. Those countries are among the biggest consumers of coffee with Brazil contributing to half of the world's consumption of coffee. Hence, profit-motivated suppliers will meet the high demands of consumers to switch from arabice beans to robusta beans in these countries. As a result, it will caus a greater extent of fall in demand for Brazil's Arabica Beans.

Ms Lee: What about supply? Which curve will shift more?]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260799 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/16S07S15GROUP1/wish/104260800 Note: Please draw the diagram manually, take a photo and upload it by clicking the "video icon". ]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260800 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260801 At the original price level P1, the quantity supplied exceeds the quantity demanded, leading to a surplus. This exerts a downward pressure on price as suppliers are willing to lower the price to get rid of the surplus. As price falls, quantity demanded rises while quantity supplied falls. This continues until the surplus is eliminated and new equilibrium formed at E2]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260801 Conclusion lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260802 The concurrent fall in demand and rise in supply 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 rise in supply, the equilibrium quantity will fall. If the rise in supply is greater than the fall in demand, the equilibrium quantity will rise.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260802 Chat Box lee_xueting https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260803 Ms Lee: Hi]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/104260803 https://padlet.com/lee_xueting/16S07S15GROUP1/wish/106917588 The emergence of cheaper robusta beans, which is a close subtitute of Brazil's arabica beans, results in fall in demand for Brazil's arabica beans, ceteris paribus. As stated in article 1"...the market is growing by around 5% a year ... these drinkers are filling their pots with cheaper robusta beans", the coffee consumers switch their coffee choice from arabica coffee to cheaper robusta beans, resulting to the fall in demand for arabica beans, ceteris paribus.]]> 2016-04-21 04:09:35 UTC https://padlet.com/lee_xueting/16S07S15GROUP1/wish/106917588