Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16S10GROUP2 en-us 2016-04-06 02:38:38 UTC 2025-10-23 13:42:35 UTC hello@padlet.com News Article 1 lee_xueting https://padlet.com/lee_xueting/16S10GROUP2/wish/104270229 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16S10GROUP2/wish/104270229 News Article lee_xueting https://padlet.com/lee_xueting/16S10GROUP2/wish/104270230 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16S10GROUP2/wish/104270230 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16S10GROUP2/wish/104270231 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16S10GROUP2/wish/104270231 Group name: lee_xueting https://padlet.com/lee_xueting/16S10GROUP2/wish/104270232 Please write out the names of the members in the group.
Group #2:
1.Desiree
2.Celine
3.Yuxiang
4.Freyr]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16S10GROUP2/wish/104270232 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16S10GROUP2/wish/104270233 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/16S10GROUP2/wish/104270233 Welcome:) lee_xueting https://padlet.com/lee_xueting/16S10GROUP2/wish/104270234 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/16S10GROUP2/wish/104270234 Introduction lee_xueting https://padlet.com/lee_xueting/16S10GROUP2/wish/104270235 Explain market mechanism:
The market mechanism 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 for coffee beans refers to the quantities of coffee beans that consumers are willing and able to purchase at different prices in a given period of time, ceteris paribus.

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




]]> 2016-04-04 06:30:11 UTC https://padlet.com/lee_xueting/16S10GROUP2/wish/104270235 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16S10GROUP2/wish/104270236 Initially, the market equilibrium E1is 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/16S10GROUP2/wish/104270236 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/16S10GROUP2/wish/104270237 POINT 1 : (demand) Robusta beans is a close substitute to arabica beans. Substitutes are goods that satisfy similar needs or desires within the same price range. With robusta beans at a more affordable price range than the luxurious arabica beans, consumers are more willing and able to purchase the robusta beans. Thus, the demand for arabica beans falls, ceteris paribus, causing a leftward shift of the demand curve from D1 to D2. 


POINT 2 : (supply) The price of coffee beans was expected to increase. Thus, many Brazilian and Columbian farmers invested to boost production of arabica in response to the high prices of 2011.Since more farmers invested in coffee beans, there is a greater supply of coffee beans. This leads to an increase in supply, ceteris paribus, which can be shown by a rightward shift in the supply curve from S1 to S2.


POINT 3 : (supply) Due to the good weather conditions in Brazil this year, a large amount of coffee beans was able to be harvested. This leads to an increase in supply, ceteris paribus, which can be shown by a rightward shift in the supply curve from S1 to S2.   

The lower price of sugar cane resulted on the demand of coffee bean to fall. This can be seen in the leftward shift of the demand curve from D1 to D2.  The expectations of farmers and good weather caused an increase in supply, this is represented by the rightward shift in the supply curve from S1 to S2. 






]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16S10GROUP2/wish/104270237 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16S10GROUP2/wish/104270238 In this case , it is likely that the extent of the increase in supply is greater than the fall in demand. This is because the high prices of arabica beans in 2011 lead to farmers expecting a further increase in prices of arabica beans, this leads to the farmers increasing their production of arabica beans in hopes of increasing their total revenue to earn more profit. Furthermore, the good weather ensures that all of the arabica beans grow in the best environment and thus there was a good harvest. As such, the farmers would want to capitalise the good weather to increase the supply of arabica beans for sale to increase their total revenue and thus increasing profits. This causes a large increase in supply. The change in taste and preferences of consumers led to them choosing robusta over arabica beans. However, the rich, who is in the minority, may still prefer the more expensive arabica beans, hence the decrease in the demand for robusta beans is less significant.  Thus, the increase in supply outweigh the decrease in demand.

]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16S10GROUP2/wish/104270238 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/16S10GROUP2/wish/104270239 At original price equilibrium, 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 totally eliminated and new equilibrium is formed at E2.   

At new equilibrium E2, equilibrium price fall from P1 to P2 and equilibrium quantity falls from Q1 to Q2. . 
]]> 2016-04-04 06:35:51 UTC https://padlet.com/lee_xueting/16S10GROUP2/wish/104270239 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16S10GROUP2/wish/104270240 Finally , the market is back in equilibirum at the intersection of the new supply curve (s2) and the new demand curve ( d2 ).

Overall , there is a fall in equilibrium price from ( p1 to p2) and a increase in equilibrium quantity from ( q1 to Q2 ) 

]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16S10GROUP2/wish/104270240 Conclusion lee_xueting https://padlet.com/lee_xueting/16S10GROUP2/wish/104270241 The fall in demand of arabica beans as well as the rise in supply for arabica beans will reinforce the decrease in price of coffee beans in Brazil. Thus, there will be a sharper fall in equilibrium price of coffee beans in Brazil. However, the effect of equilibrium quantity of coffee beans in Brazil is indeterminate as it depends on the relative extent of changes in demand and supply. If the fall in demand of coffee beans is greater than the increase in supply of coffee beans, equilibrium quantity of coffee beans will fall. On the other hand, if the fall in demand of coffee beans is smaller than the increase in supply of coffee beans, equilibrium quantity of coffee bns will rise. 

]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16S10GROUP2/wish/104270241 Chat Box lee_xueting https://padlet.com/lee_xueting/16S10GROUP2/wish/104270242 Ms Lee: Hi
Desiree: Hello!!
yuxiang :D]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16S10GROUP2/wish/104270242