Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S14S17GROUP5 en-us 2016-04-17 12:40:37 UTC 2023-02-28 22:46:55 UTC hello@padlet.com News Article 1  lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170527 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170527 Chat Box lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170528 Ms Lee: Hi 

]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170528 Conclusion lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170529 The leftward shift of the demand curve and the rightward shift of the supply curve will reinforce each other to result in a sharp decrease in price. The greater the fall in demand and rise in supply, the more significant the fall in price of Brazil coffee.]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170529 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170530 Once the market price of P2 is achieved, the market for coffee is at new equilibrium of E2 where quantity supplied is equal to quantity demanded. Overall, there is a fall in price of coffee from P1 to P2 and a fall in quantity from Q1 to Q2.]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170530 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/16S14S17GROUP5/wish/106170531 Note: Please draw the diagram manually, take a photo and upload it by clicking the "video icon". 

From the diagram below, at the original price P1, quantity supplied is more than quantity demanded by QdQs,  creating a surplus. This exerts a downward pressure on price. As price decreases, quantity demanded increases while quantity supplied decreases and the surplus is gradually eliminated.]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170531 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170532 Factors affecting demand curve causes the demand for coffee to decrease, resulting in the demand curve to shift left from D1 to D2, ceteris paribus. Factors affecting supply curve causes an increase in production of coffee, thus there is a rightward shift of supply curve from S1 to S2, certeris paribus. 

It is likely that the demand curve shifts more than the supply curve. 
Assuming that Brazil arabica-bean is a luxury good compared to other coffee beans like robusta beans, the demand for it will be income elastic. A recession will cause consumer's income level to drop which leads to a more than proportionate decrease in demand for arabica-bean. On the other hand, the good weather that increase the supply is not fix, weather varies so it is not certain that there will be a large increase in supply of arabica-bean. Thus the demand curve shifts more than the supply curve.]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170532 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/16S14S17GROUP5/wish/106170533 Demand factors:
1. Article 1 states that "these drinkers are filling their pots with cheaper robusta beans". Since Robusta bean and arabica-bean are substitutes, consumers would switch away from the more expensive substitute to the cheaper ones. As Robusta bean is considered cheaper compared to the tastier and pricier arabica-bean that Brazil mainly produces, the demand for Brazil coffee beans (arabica-bean) will decrease shifting the demand curve leftwards from D1 to D2, ceteris paribus.

2. Article 1 states that "Worse still for arabica producers, the recession in Europe has hit demand and squeezed profits for roasters." Therefore, with a recession, consumers will have lower income and they will have lower purchasing power. Thus they will demand less for arabica-bean which is not seen as a necessity by the majority consumers. The demand curve will shift leftwards from D1 to D2, ceteris paribus.

Supply factors:
1. Article 2 states "good weather in Brazil means that this year's crop has turned out to be unexpectedly large." This shows that there is a large production of arabica-bean thus this increases the supply, shifting the supply curve rightwards from S1 to S2, ceteris paribus.]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170533 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170534 Initially, the equilibrium is at the intersection of D1 and S1 at equilibrium point E1 where the price is at P1 and the quantity is at Q1.]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170534 Introduction lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170535 Explain market mechanism:
Market machanism is the determination of the price of coffee beans in Brazil by forces of demand and supply. 
Define demand: Demand for coffee is defined as the amount of coffee that consumers are able and willing to purchase in a given period of time at various prices. 
Define supply: Supply of coffee is defined as the amount of coffee that producers are able and willing to offer for sale in given period of the time at various prices. ]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170535 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170536 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/16S14S17GROUP5/wish/106170536 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170537 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/16S14S17GROUP5/wish/106170537 Group name: lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170538 Please write out the names of the members in the group.
1. Sharon
2. Yun Hui
3. Yiru]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170538 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170539 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170539 News Article lee_xueting https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170540 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S14S17GROUP5/wish/106170540