Coffee Bean Market - Arabica by XueTing Lee https://padlet.com/lee_xueting/16A03GROUP3 en-us 2016-04-06 00:10:05 UTC 2025-10-12 10:15:56 UTC hello@padlet.com Chat Box lee_xueting https://padlet.com/lee_xueting/16A03GROUP3/wish/104256199 Ms Lee: Hi
Mr Chan: Do state your name before adding any comments]]> 2016-04-04 06:39:46 UTC https://padlet.com/lee_xueting/16A03GROUP3/wish/104256199 Conclusion lee_xueting https://padlet.com/lee_xueting/16A03GROUP3/wish/104256200 In conclusion, the fall in price of coffee in Brazil is mainly due to the decreased demand and increased supply of arabica beans. The production of coffee beans in Brazil is mainly arabica coffee, hence the fall in price for arabica beans affected prices of coffee in Brazil, as well as the profit and revenue of coffee bean farmers, significantly. ]]> 2016-04-04 06:38:57 UTC https://padlet.com/lee_xueting/16A03GROUP3/wish/104256200 Body: State the new (final) equilibrium lee_xueting https://padlet.com/lee_xueting/16A03GROUP3/wish/104256201 however, the supply of the the coffee in the arabica bean variety will most likely fall a lot quicker than the robusta bean variety. This is due to the the greater demand for robusta coffee beans, of which Brazil produces less of. In addition, a recession in Europe has resulted in large food firms such as Kraft and Nestlé turning to the cheaper robusta bean variety to aid with saving cost. As such, the price equilibrium of Arabica beans is significantly lowered at the intersection of Q2 and P2. This is because the leftward shift of the demand curve due to above mentioned factors resulted in a surplus of beans as the supply remained constant. As such a surplus is created and this places a downward pressure on the price. 
Both the quantity demanded and the price of the Arabica beans have seen a significant decline. The market for Arabica beans has shrunk. ]]> 2016-04-04 06:38:13 UTC https://padlet.com/lee_xueting/16A03GROUP3/wish/104256201 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/16A03GROUP3/wish/104256202 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/16A03GROUP3/wish/104256202 Body: Decide the direction and magnitude in which the curves shift lee_xueting https://padlet.com/lee_xueting/16A03GROUP3/wish/104256203 The supply curve would shift to the left by a small extent due to the Leaf Rust disease in Central America and the Brazilian farmers burning their coffee beans.
The demand curve would shift to the left by a large extent as consumers in brazil has many choices, as coffee as a beverage has many substitutes. Additionally, the Arabica bean produced by the Brazilian farmers is not the only type of coffee bean produced and as such demand is elastic due to the large number of close substitutes.

]]> 2016-04-04 06:34:27 UTC https://padlet.com/lee_xueting/16A03GROUP3/wish/104256203 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/16A03GROUP3/wish/104256204 The increasing demand for robusta coffee has resulted in the fall in demand for arabica coffee as robusta beans is a substitute for arabica beans. This is shown in the article "Strong demand for entry-level coffee-40% of the world's coffee crop is now robusta beans" When demand for robusta beans fall, demand curve shift to the right ceteris peribus. Thus equilibrium price of the arabica beans has decreases.40% of the coffee produced in Brazil are arabica coffee, thus decrease in demand of arabica beans has caused the fall in the prices for coffee in Brazil.  

Due to Leaf Rust, as shown in article 2,"Central American countries where the finest coffee is grown, including Guatemala, Nicaragua and El Salvador, have been hit by leaf rust, which could wipe out 30% of this year's crop." many coffee crops will be destroyed by the disease. This means that supply of coffee beans will drastically decrease, shifting the supply curve to the left ceteris peribus.


The good weather in Brazil and over investment of arabica beans have resulted in the increase in supply of arabica beans. From the above article "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" Thus there will be excess supply of arabica beans resulted is supply cure shifting to the left, ceteris peribus. Equilibrium price of arabica beans therefore fall.]]> 2016-04-04 06:32:26 UTC https://padlet.com/lee_xueting/16A03GROUP3/wish/104256204 Body: State the initial equilibrium lee_xueting https://padlet.com/lee_xueting/16A03GROUP3/wish/104256205 The market equilibrium initially stands with a high demand in coffee due to the the '83% of all American adults drink it, 63% of them on a daily basis'. The supply is also high to meet the the needs of coffee-drinkers around the globe. The high demand of coffee can be seen in D1 and the supply of coffee can be seen in S1.

]]> 2016-04-04 06:31:44 UTC https://padlet.com/lee_xueting/16A03GROUP3/wish/104256205 Introduction lee_xueting https://padlet.com/lee_xueting/16A03GROUP3/wish/104256206 Explain market mechanism: The market mechanism works through the interaction of the market forces of demand and supply to determine the equilibrium price and output.


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


Define supply: Supply is 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/16A03GROUP3/wish/104256206 Welcome:) lee_xueting https://padlet.com/lee_xueting/16A03GROUP3/wish/104256207 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/16A03GROUP3/wish/104256207 Topic: Demand, Supply & Market Equilibrium lee_xueting https://padlet.com/lee_xueting/16A03GROUP3/wish/104256208 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/16A03GROUP3/wish/104256208 Group name: lee_xueting https://padlet.com/lee_xueting/16A03GROUP3/wish/104256209 Please write out the names of the members in the group.
1. Samantha Wong
2. Leong Jing Yen
3. Celestee Low
4. Valerie Sie]]> 2016-04-04 06:03:43 UTC https://padlet.com/lee_xueting/16A03GROUP3/wish/104256209 With reference to the 2 news articles,  explain the fall in prices of coffee beans in Brazil. lee_xueting https://padlet.com/lee_xueting/16A03GROUP3/wish/104256210 2016-04-04 05:52:46 UTC https://padlet.com/lee_xueting/16A03GROUP3/wish/104256210 News Article lee_xueting https://padlet.com/lee_xueting/16A03GROUP3/wish/104256211 2016-04-04 05:51:11 UTC https://padlet.com/lee_xueting/16A03GROUP3/wish/104256211 News Article 1 lee_xueting https://padlet.com/lee_xueting/16A03GROUP3/wish/104256212 2016-04-04 05:48:50 UTC https://padlet.com/lee_xueting/16A03GROUP3/wish/104256212