Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S02GROUP1 en-us 2016-04-06 00:44:10 UTC 2023-03-04 19:20:31 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S02GROUP1/wish/104259790 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S02GROUP1/wish/104259790 News Article lee_xueting https://padlet.com/lee_xueting/16S02GROUP1/wish/104259791 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S02GROUP1/wish/104259791 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S02GROUP1/wish/104259792 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S02GROUP1/wish/104259792 Group name: lee_xueting https://padlet.com/lee_xueting/16S02GROUP1/wish/104259793 Please write out the names of the members in the group.
1.Aloysius 
2.Kai Yi
3.Kuan Wei
4.Yu Qing 
5.Sandar]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S02GROUP1/wish/104259793 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S02GROUP1/wish/104259794 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/16S02GROUP1/wish/104259794 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S02GROUP1/wish/104259795 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/16S02GROUP1/wish/104259795 Introduction lee_xueting https://padlet.com/lee_xueting/16S02GROUP1/wish/104259796 Explain market mechanism: 
Market mechanism describes how the forces of demand and supply determine prices of goods and services which then ultimately determines the way our productive resources are allocated in the economy.

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


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




]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S02GROUP1/wish/104259796 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S02GROUP1/wish/104259798 Assuming coffee to be a luxury good as it is a type of beverage which is not essential for humans, and that the coffee beans in consideration is arabica coffee beans, ceteris paribus. Initially, the market of coffee beans is in equilibrium at E1, where the demand for coffee beans, D1, and supply for coffee beans, S1, intersects. ]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S02GROUP1/wish/104259798 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/16S02GROUP1/wish/104259799 Due to a recession in Europe, the Europeans have a lower income resulting in weaker purchasing power, encouraging them to spend more of their money on necessities instead of luxury goods This is evident from extract 1, "Worse still for arabica producers, the recession in Europe has hit demand and squeezed profits for roasters.". This causes demand for coffee beans to be adversely affected, resulting in a fall for demand of coffee beans, ceteris paribus.
Additionally, there is a change in tastes and preferences as seen in extract 1,"Strong demand for entry-level coffee-40% of the world's coffee crop is now robusta beans" and "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" have shown how individuals are changing from arabica beans to robusta beans. This change in taste and preference causes a fall in demand for arabica beans compared to robusta beans, ceteris paribus.
Furthermore, there is an increase in cost of production for coffee beans. This is shown in extract 1, "Wages in Brazil and Colombia are increasing and coffee is a labour-intensive crop, picking is still largely done by hand" This meant that the wages of the workers cannot be cut despite of the falling price for coffee beans, leading to a fall in supply for coffee beans in order to maximize their profits, ceteris paribus.

Ms Lee: for the 3rd point. as the qn asked u to explain why prices of arabica coffee beans fall, will it be better for you to identify a non-price factor that leads to an increase in the supply of arabica coffee beans?]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S02GROUP1/wish/104259799 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S02GROUP1/wish/104259800 As both the demand and supply for coffee beans have fallen, it is shown by a leftward shift in both the demand and the supply curves. The fall in demand is shown by a leftward shift of the demand curve from D1 to D2 and the fall in supply is shown by a leftward shift of the supply curve from S1 to S2. This creates a new equilibrium point at E2 where the D2 and S2 intersects.
At original price P1, the simultaneous fall in demand and supply with the extent of the fall in demand is more significant than the fall in supply. This is due to the many factors affecting the demand for coffee beans in comparison to the fewer factors affecting the supply for coffee beans. 

Ms Lee: I said before that u cannot use the number of factors to justify why demand will shift more.

Additionally, with 40% of the world's coffee crop now robusta and not arabica, the fall in demand for arabica coffee beans is more significant than the fall in supply. This creates a surplus of QdQs as quantity supplied now exceeds quantity demanded, exerting a downward pressure on the price of coffee beans. As the price falls, quantity demanded rises while quantity supplied falls, eventually reaching a new equilibrium point of E2, where the surplus is eliminated. The supply will then be at Q2 while the price will be at P2, which is where where quantity demanded is once again equal to the quantity supplied.]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S02GROUP1/wish/104259800 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/16S02GROUP1/wish/104259801 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/16S02GROUP1/wish/104259801 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S02GROUP1/wish/104259802 At the original price P1, quantity supplied exceeds quantity demanded, leading to a surplus. This exerts a downward pressure on price as suppliers offer lower prices to get rid of the excess supply. As price falls, quantity demanded rises while quantity supplied falls. This continues until the surplus is eliminated and new equilibrium is formed at E2 at new P2.

Ms Lee: Please address the question and explain the fall in price of Arabica coffee beans.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S02GROUP1/wish/104259802 Conclusion lee_xueting https://padlet.com/lee_xueting/16S02GROUP1/wish/104259803 In conclusion, both price and non price factors can influence the demand of coffee beans in Brazil. The recession is probably one of the strongest factor to affect the demand for coffee beans. This is because coffee beans are considered as a luxury good and the level of necessity is low. Thus the demand for cars become price elastic. The equilibrium price will fall if the extent of fall in supply is lesser than the extent in fall of demand.

Ms Lee: need to explain the impact on equilibirum pirce!]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S02GROUP1/wish/104259803 Chat Box lee_xueting https://padlet.com/lee_xueting/16S02GROUP1/wish/104259804 Ms Lee: Hi]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S02GROUP1/wish/104259804