Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S10GROUP1 en-us 2016-04-06 02:38:35 UTC 2025-07-23 18:31:19 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S10GROUP1/wish/104270213 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S10GROUP1/wish/104270213 News Article lee_xueting https://padlet.com/lee_xueting/16S10GROUP1/wish/104270214 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S10GROUP1/wish/104270214 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S10GROUP1/wish/104270216 Nua: The traditional markets for their wares are saturated. Production of coffee, and of cheaper robusta beans in particular, is booming. Many Brazilian and Colombian farmers invested to boost production of arabica in response to the high prices of 2011, which has added to the oversupply and further depressed prices. And good weather in Brazil means that this year's crop has turned out to be unexpectedly large.
This resulted in an oversupply of coffee beans in Brazil.

When there is an oversupply of coffee, a surplus develops and producers will want to clear as much stock as possible. Producers then start to lower price to increase the number of consumers for coffee beans. Therefore, there is a fall in prices of coffee beans in Brazil]]> 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S10GROUP1/wish/104270216 Group name: lee_xueting https://padlet.com/lee_xueting/16S10GROUP1/wish/104270217 Please write out the names of the members in the group.
1. Richard
2. Ikmal
3. Wayne
4. Nickson
5. Min tae

]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S10GROUP1/wish/104270217 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S10GROUP1/wish/104270218 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/16S10GROUP1/wish/104270218 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S10GROUP1/wish/104270219 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/16S10GROUP1/wish/104270219 Introduction lee_xueting https://padlet.com/lee_xueting/16S10GROUP1/wish/104270220 Explain market mechanism:
The market mechanism works through the interaction of market forces of demand and supply to determine equilibrium price and quantity of coffee beans in Brazil.

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

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



]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S10GROUP1/wish/104270220 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S10GROUP1/wish/104270221 Initially, the market for coffee beans is in equilibrium at E1 at the intersection of demand (D1) and supply (S1). The initial equilibrium price and quantity is at P1 and Q1 respectively. ]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S10GROUP1/wish/104270221 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/16S10GROUP1/wish/104270222
SUPPLY: 
Richard: From the article, "In response to the high prices of 2011 Brazilian farmers invested heavily in new acreage and improved yields with better husbandry and more fertiliser." This suggests that supply of arabica coffee is increasing and will continue to increase because of more land resources, augmented care for crops and faster crop growth, ceteris paribus. 

DEMAND:
Richard: From article 2, "recession has squeezed the profits of big food companies such as Nestlé and Kraft. 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." This suggests that huge European coffee processors suffer from economic recession, resulting in a fall in income earned and thus a need to lower costs so as to keep the profit the same by reducing production cost through cheaper factor inputs such as robusta beans. Hence, demand for arabica coffee decreases, ceteris paribus.

Richard: Furthermore, growing demand for entry-level coffee among the emerging middle classes especially in China, Indonesia and Brazil, are discovering the joys of coffee and the market is growing by around 5% a year, as a result robusta is the bean of choice. These countries find coffee made from robusta beans an affordable luxury and thus their tastes and preferences incline toward robusta coffee which are cheaper substitutes of arabica coffee. In this case, demand for arabica coffee falls also because there is greater number of consumers shifting their demand toward robusta coffee, especially in China and Indonesia where the consumer market is very large. Combined, demand for arabica beans fall, ceteris paribus. ]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S10GROUP1/wish/104270222 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S10GROUP1/wish/104270223 Nua: The demand curve shifts leftwards, from D1 to D2.
The supply curve shifts rightwards, from S1 to S2.
The shift of demand has a larger magnitude compared to the shift of supply.

]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S10GROUP1/wish/104270223 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/16S10GROUP1/wish/104270224 Nick:At the initial equilibrium price P1, the decrease in demand and increase in supply creates a surplus of QDQS.( QS denotes the quantity supplied and QD denotes the quantity demanded at P1) This exerts a downward pressure on price as producers are willing to decrease the price of the coffee to get rid of the excess stock. This results in the rise in quantity demanded and fall in quantity supplied till it reaches the new equilibrium quantity at Q2.]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S10GROUP1/wish/104270224 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S10GROUP1/wish/104270225 Nick: At the new equilibrium price P2 ( where the new supply curve S2 intersects the new demand curve D2) , the new equilibrium quantity at Q2 is lower than the initial equilibrium quantity at Q1. The new equilibrium is at E2]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S10GROUP1/wish/104270225 Conclusion lee_xueting https://padlet.com/lee_xueting/16S10GROUP1/wish/104270226 Mintae: The increase in supply and the decrease in demand will reinforce the decrease in price of coffee, as seen in the graph, equilibrium quantity decreases from Q1 to Q2.
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.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S10GROUP1/wish/104270226 Chat Box lee_xueting https://padlet.com/lee_xueting/16S10GROUP1/wish/104270227 Ms Lee: Hi
Hakeem: Richard do 1 factor, i do 1 factor, wayne do 1 factor and explain how the curve shift, mintae do the conclusion, nickson draw the curve can?]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S10GROUP1/wish/104270227